Mumbai: Shares of Maruti Suzuki India surged 4 per cent on Friday, May 2, touching a 9-week high of Rs 12,727 per share. The rally came after the company reported a 7 per cent rise in total vehicle sales for April. Investors reacted positively to the numbers, despite some mixed trends in specific segments.
April Sales Up 7 per cent, Compact and SUV Models Lead
Maruti Suzuki sold 179,791 units in April, compared to 168,089 units in the same month last year.
Domestic passenger vehicle sales stood at 138,704 units, slightly up from 137,952 units.
Compact car sales rose to 61,591 units from 56,953 units, showing healthy demand.
SUV sales, including models like Brezza and Grand Vitara, also grew to 59,022 units from 56,553 units.
Mini Car Segment Declines Sharply
While overall sales grew, Maruti saw a sharp 45 per cent drop in mini car sales. Sales of the Alto and S-Presso fell to 6,332 units from 11,519 units last year. The Eeco van also declined to 11,438 units from 12,060 units.
Exports and Commercial Sales See Growth
Exports saw a strong rise, jumping to 27,911 units from 22,160 units.
Sales of the Super Carry light commercial vehicle also increased to 3,349 units from 2,496 units.
Production Rises, But Small Car Output Falls
Total production in April rose to 179,956 units from 169,751 units.
Mini car production fell 29 per cent to 9,714 units, showing weak demand.
SUV production rose by 19 per cent to 72,640 units, reflecting strong market interest.
Chairman Flags Affordability Issues
Maruti Suzuki Chairman R.C. Bhargava said demand for small cars is falling due to affordability concerns. “Sales of small cars have dropped by 9 per cent. Most people can’t afford expensive cars,” he noted, adding that small cars need to become more affordable to revive growth.
Q4 Profit Marginally Down, Revenue Up
For the January–March 2025 quarter, Maruti reported a consolidated net profit of Rs 3,911 crore, slightly down from Rs 3,952 crore last year. However, revenue rose 6.6 per cent to Rs 40,920.1 crore.
Brokerages Cut Target Prices, Maintain Ratings
- Nomura revised its stock target to Rs 12,886 from Rs 13,290, keeping a ‘Neutral’ rating.
- Axis Securities lowered its target to Rs 11,170 from Rs 12,065, but maintained a ‘Buy’ rating.
