High-margin UV sales power Maruti Suzuki’s FY24 topline & bottomline

Maruti Suzuki launched its Jimny and Fronx SUVs last year

Robust growth in high-margin Utility Vehicles (UVs) such as Grand Vitara, Jimny, Brezza, Ertiga, and Fronx, drove up the topline of Maruti Suzuki in FY 2023-24 to Rs 1,40,933 crore, as compared to a topline of Rs 1,17,523 crore (20 percent YOY increase). The company’s net profit also went up by nearly 64 percent to Rs 13,209 crore.

During the April 2023 to March 2024 period, the share of UVs in Maruti’s overall sales went up from 22.25 percent at 3,66,129 units to 36.5 percent 642,296 units. The total number of passenger vehicles, which includes vans, sedans, and compact cars, went up from 1,606,870 units in FY 23 to 1,759,881 units in FY24, marking nearly a 10 percent increase YOY.

Out of the total UVs sold during the last fiscal, SUVs accounted for 25.2 percent of total PV sales, MPVs around  11.3 percent.

“Utility Vehicles (UVs) were Maruti's best-performing segment, which saw a 71.5 percent YoY jump while its mini, midsize, and light commercial vehicles (LCVs) recorded negative growth," Maruti Suzuki said in a release.

During the post results media interaction, the company management stated that the sales in the domestic market have risen to “record levels” over the last two fiscal years, with sports utility vehicles (SUVs) accounting for a major chunk of the pie.

“The customer preference has shifted from sedans and hatchbacks to UVs. MSIL launched a number of models in this segment (such as Jimny, Fronx) and was able to rapidly increase sales. Customer confidence and trust in MSIL is high and we give excellent value for money," MSIL Chairman RC Bhargava.

During Q4 FY 24, Maruti Suzuki dispatched a total of 584,031 vehicles (including CVs), up 13.4 percent from 514,927 units in the comparable period. Domestic volume grew 12.2 percent to 505,291 units, while exports rose 21.7 percent to 78,740 units on a low base.

The company revealed that the strong momentum in UV sales enabled it to offset the decline in volumes in the mini and compact segments during the fourth quarter.