Maruti Suzuki’s wholesale dispatches rise 33.4% in September

NEW DELHI: Aided by a quick recovery in demand for entry-level cars, hatchbacks and utility vehicles, Maruti Suzuki India Ltd on Thursday reported a 33.4% year-on-year growth in domestic wholesale for September to 1,50,040 units.

The country’s largest passenger vehicle manufacturer had sold 1,12,500 units in the year-ago period.

Factory dispatches also improved from August , when the company had sold 1,15,325 units while sales in July numbered 1,00,000 units. Maruti resumed production at its Manesar plant from May 12, with dispatches at 13,865 units for that month.

The growth in wholesales though comes on a very low base, with the company reducing production due to falling demand for vehicles and transition to Bharat Stage-VI emission norms. Maruti, typically, manufactures 1.5 lakh vehicles in a month. In FY20 the company reported 17% decline in sales.

Hatchback sales grew 44.3% year-on-year to 1,11,459 units in August, while those of utility vehicles rose 10% to 23,699 units.

Maruti’s exports also increased by 9% y-o-y to 7,834 units during the month.

Despite a decent recovery in retail sales, automakers like Maruti Suzuki and others are struggling to ramp up production due to disruption in supply chain network. Localised lockdowns, rising covid-19 cases, and increased inspection of imported parts from China have also caused problems for auto makers and their suppliers.

Mint, had earlier reported that Maruti Suzuki plans to increase its car production to 1,45,000 units in September and 1,80,000 units in October, on hopes that sales of affordable, entry-level hatchbacks will continue to improve during the festival season as a result of a faster revival in demand in semi-urban and rural markets.

Investors have been bullish about Maruti near-term prospects since it is also likely to benefit from a shift in demand for hatchbacks given the increasing preference for personal mobility on fears of contracting infection.