The logo of Maruti Suzuki India Limited is seen on a glass door at a showroom in New Delhi
The country’s largest car maker Maruti Suzuki has clocked its highest-ever monthly sales in July, reporting a growth of 13.9%. July domestic sales stood at 1,25,778 units against 1,10,405 units in the same month last year. Its nearest competitor Hyundai has clocked a 13% growth in July domestic sales.
A 14% sales jump by the market leader and a strong performance by the second-largest player will lift the industry’s July performance after a low single digit growth of 2.7% in June. Maruti commands a 46% share in the domestic passenger vehicles’ (cars, utility vehicles and vans) market and Hyundai has another 17%.
Reacting to the news, Maruti’s stock hit a new high at the BSE. At 12.05 pm, it was trading at Rs 4,867, up 2.35% from the previous close. The July performance comes after a double digit decline of 10% in June sales as it lost production due to disruption in supply of air conditioning components and a six day maintenance shutdown.
Including exports, the company sold a total of 1,37,116 units in July 2016, growing 12.7% over the same period of last fiscal. This includes 1,25,778 units in the domestic market and 11,338 units of exports. The company had sold a total of 1,21,712 units in July 2015.
Hyundai sold 41,201 vehicles in the domestic market last month against 36,503 units in July last year. Rakesh Srivastava, senior vice-president (sales and marketing) at the company, said: “Hyundai continues to sustain strong growth trajectory, volume of 41,201 units with growth of 12.9% on the strength of strong pull performance of Grand i10, Elite i20 and Creta in a market showing improved customer sentiments led by good monsoons, low inflation, reduced interest rates and dropping fuel prices.”