Indicating a slowdown in one of the world’s fastest growing auto markets, Maruti Suzuki India’s total sales in April declined 17.2 per cent over a year ago, the company said in a statement on Wednesday. The car market leader dispatched a total of 1,43,245 units during the month over 1,72,986 units in the same month a year ago. Auto makers in India count dispatches to dealers as sales.
The numbers also include dispatch of 364 compact cars to Toyota Kirloskar Motor as part of the broader agreement between Toyota Motor Corp and Suzuki Motor Corp on sharing product, platforms and technologies.
Dragged down by a drop in volumes across all the segments, the domestic sales at the firm crimped by 18.7 per cent at 1,34,068 units as against 1,64,978 last year. While sales of mini cars that comprises Alto and old WagonR (now discontinued) fell 39.8 per cent over the last year, compact cars including the New WagonR, Swift, Celerio, Ignis, Baleno and Dzire, were down 13.9 per cent over a year ago period. Mid-sized sedan Ciaz also dropped 45.5 per cent over the last year, the company said.
The maker of the bestseller Baleno and Brezza has guided for a weak fiscal 2020 on back of disruption that is expected with the switch to the stricter emission norms from 1 April 2020. Passenger vehicles sales in India advanced by a mere 2.7 per cent in March, the slowest in five years as a higher cost of ownership including interest rates, increased premium outgo on insurance among other factors, deterred car buyers. Sales have also been slowing owing to the ongoing Lok Sabha Elections. The company expects a 5-8 per cent growth for the full year, one of the lowest in several years. Industry body Society has forecast a 3-5 per cent growth in passenger vehicles sales for the ongoing fiscal.
Exports at the local arm of the Japanese car maker rose 14.6 per cent during the month to 9177 units over a year ago.