Shares of Maruti Suzuki India dropped over 2 percent on October 3 after the company reported a near 1.2 percent on year decline in domestic sales in September.
Despite that, Maruti Suzuki India's total sales came at 1.84 lakh units in September, marking an on-year increase of 1.9 percent. Domestic sales, however, saw a slight decline of 1.2 percent to 1.57 lakh units, while exports surged by 23 percent, with 27,728 units shipped in September.
At 12.27 pm, shares of Maruti Suzuki were trading at Rs 12,882 on the NSE.
The entry-level segment saw flat year-on-year volume for Maruti Suzuki, while premium segment car sales declined by 12 percent. SUV sales, however, recorded around 4 percent on-year growth.
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The automaker's market share held steady at around 40 percent, unchanged from the previous month. Additionally, channel inventory has been reduced to around 30 days, down from the previous 36-37 days. The company anticipates growth during the upcoming festive season.
Brokerage firm Nomura sees domestic passenger vehicle industry wholesales at around 360,000, down a percent on year September, despite the bunch-up of festive season in October as compared to the spread across October-November last year.
"Higher channel stocks in the system coupled with slow consumer demand led to
subdued dispatches," the firm noted. Going ahead however, Nomura expects a strong discount push by OEMs (Original Equipment Manufacturers) to drive sales during the festive period.
"We maintain our view that small cars are unlikely to see any significant revival and that Sport Utility Vehicles (SUVs) will continue to gain share," Nomura added.
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