India’s largest carmaker Maruti Suzuki has doubled its profit in Q3 thanks to increased sales of its SUV models like Brezza and Grand Vitara since the festive month of October last year. Maruti recorded profit of ₹2,347 crore, beating quarterly profit estimates due to strong demand for its passenger cars. The profit is double than ₹1,011 crore the carmaker clocked exactly a year ago. Maruti Suzuki currently hold an overall market share of just over 40 per cent, down by about 10 per cent. It still remains far ahead of the next two big names in Indian auto industry – Hyundai Motor and Tata Motors.
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Besides strong demand during the festive period, increase in Maruti Suzuki’s sales in last quarter was also helped by improved semiconductor supplies. Maruti sold 4.65 lakh vehicles during the third quarter that ended in December last year. However, the carmaker could not build around 46,000 vehicles as it fell short of production target due to a shortage of electronic components. Maruti Suzuki currently has a long list of models with ever expanding waiting periods for them. It has a backlog of around 3.63 cars till December 31. Nearly half of the models pending to be manufactured include new models like the Grand Vitara and Brezza SUVs as well as the new generation Ertiga MPV.
Watch: Maruti Suzuki Grand Vitara: First Drive Review
Despite long waiting lists, SUVs have scored bigger than small cars for Maruti Suzuki during this period. Since the launch of the new generation Brezza last year, Maruti has made its intentions clear to disrupt the SUV segment with new models to take on the rivals like Hyundai, Kia and Indian carmakers like Tata Motors and Mahindra. SUV sales for Maruti during this period went up by about 25 per cent while smaller cars contributed to around 17 per cent of its overall sales.
With new SUV models like Jimny and Fronx waiting to be launched, Maruti Suzuki will hope to consolidate its position in the SUV segment and increase its share of the pie currently shared by the other three mostly. of commodity prices and improved price realisation or the money it received for every car sold. Maruti Suzuki is expected to launch the Jimny and Fronx among other SUV models in the course of this year.
First Published Date: 26 Jan 2023, 11:58 AM IST