Maruti Suzuki disappointed analysts with its October sales as it sold 1.33 lakh units during the month, down 0.3 percent compared with 1.34 lakh units sold in year-ago period. It was worst on month-on-month basis as sales fell 10.3 percent.
Maruti Suzuki disappointed analysts with its October sales despite being a festival month (Dussehra and Diwali). It sold 1.33 lakh vehicles during the month, down 0.3 percent compared with 1.34 lakh units sold in year-ago period, dragged by exports and muted growth in domestic sales. It was worst on month-on-month basis as sales fell 10.3 percent. September sales had grown 31 percent.
Exports in October plunged 23.7 percent year-on-year and 15.2 percent month-on-month to 10,029 units. Domestic sales increased 2.1 percent to 1.23 lakh units compared with corresponding period of last fiscal but dropped 9.9 percent from previous month.
"While month on month sales figures are impacted by very short term factors like number of working days, availability, stock plan etc, the more accurate reflection of demand is that for the festive season (August to October), Maruti sales have grown by about 14 percent compared to last year," RS Kalsi, executive director, marketing and sales said.
He further said market demand for Maruti Suzuki products remained strong during the month. Strong retail sales of Ciaz, S Cross and Ertiga, besides of course Brezza and Baleno, kept the momentum positive.
Nomura had estimated Maruti to show 7.3 percent growth in October sales with domestic sales rising 10.7 percent.
Utility vehicles especially recently launched Vitara Brezza and S-Cross continued to be leader in sales growth, showing a whopping 90.9 percent rise over a year-ago period. Ciaz, which comes under mid-size segment, also reported a 8 percent growth but other segments were down.
Overall passenger cars sales declined 5.2 percent as mini cars (Alto, WagonR) registered a 9.8 percent degrowth, compact cars segment showed a 1.8 percent and super compact (Dzire Tour) down 27.4 percent.
The company sells Swift, Ritz, Baleno, Dzire and, Celerio under compact car segment, which contributed more than 37 percent to overall sales.
Even vans sales (Omni, Eeco) showed a 6.5 percent degrowth in the month gone by.
Maruti said under super carry segment, which recently launched, it sold 80 units of light commercial vehicles against 44 units sold in September.
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