Maruti Suzuki, the country's largest passenger vehicles manufacturer, has registered a 12.2 percent growth in August sales by selling 1.32 lakh units against 1.17 lakh units in same month last year, driven largely by Vitara Brezza, Ciaz and some compact cars.
Maruti Suzuki, the country's largest passenger vehicles manufacturer, has registered a 12.2 percent growth in August sales, driven largely by Vitara Brezza, Ciaz and some compact cars. It sold 1.32 lakh units during the month against 1.17 lakh units sold in same period last year.
Domestic sales increased by 12.3 percent to 1.19 lakh vehicles and exports grew by 10.8 percent to 12,280 units compared with year-ago period.
Maruti in its filing on Thursday said it sold 16,806 utility vehicles in the month gone by, up 114.5 percent over a year-ago period. The growth was largely led by Vitara Brezza launched in March and partly by S-Cross & Ertiga.
Passenger cars sales, which contributed 68 percent to total sales, grew by 4.4 percent due to growth in compact segment that showed 9.9 percent growth and partly by Ciaz that comes under mid size category. However, mini cars segment (Alto & WagonR) and super compact (Dzire Tour) registered 6 percent degrowth.
Compact segment contributed half of passenger cars sales.
Maruti said it sold 25 light commercial vehicles in August, taking total to 39 units that sold so far after launched in July.
Meanwhile, Credit Suisse has maintained outperform rating on the stock but raised target price to Rs 6,000 from Rs 5,150 earlier as it still remains a good earnings per share (EPS) growth story.
It believes Maruti can potentially surprise on margins in the next two quarters on pricing and operating leverage benefits.
Once Gujarat comes on stream, volumes will ramp up, but margins can be impacted for a few quarters as the entire vendor base will take some time to move, it feels.
The brokerage house says interaction with Maruti dealers suggests that with the Pay Commission payout coming in, it has launched special discount offers and financing schemes to woo buyers. Maruti has compiled a database of 750,000 central government employees who can be potential car buyers and distributed it among its dealers and expects them to ramp up volumes significantly in this segment.
Given the capacity limitation, the Pay Commission benefit will not be visible in volumes in a big way (except for some improvement in the lower segments) in the near term, it feels.
The stock price recovered losses after steady set of numbers. It was trading at Rs 5,064.65, up 0.24 percent at 10:40 hours IST.The Great Diwali Discount!
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