Maruti Suzuki share price rallies 4% to 9-week high after April sales rise 7%

Maruti Suzuki share price in focus today: Shares of Maruti Suzuki India, the country’s largest automaker, surged 4% in intraday trade on Friday, May 2, touching a 9-week high of ₹12,727 apiece, as investors reacted positively to the company’s April sales numbers released on Thursday.

The company reported a 7% increase in total sales to 179,791 units in April, compared to 168,089 units during the same month last year.

Domestic passenger vehicle sales rose marginally to 138,704 units from 137,952 units a year ago. However, sales in the mini car segment, which includes the Alto and S-Presso, declined sharply to 6,332 units from 11,519 units in April last year.

In contrast, sales of compact cars such as the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR rose to 61,591 units from 56,953 units. Sales of utility vehicles, including the Brezza, Ertiga, Grand Vitara, and XL6, also increased to 59,022 units from 56,553 units.

The Eeco van recorded sales of 11,438 units in April, compared to 12,060 units a year earlier, while light commercial vehicle Super Carry sales rose to 3,349 units from 2,496 units.

The company also reported that its exports stood at 27,911 units in April, up from 22,160 units in the same month last year. Additionally, Maruti Suzuki released its production figures for the month.

Total production in April rose to 179,956 units from 169,751 units a year earlier. Within the passenger vehicle segment, production of mini cars like the Alto and S-Presso fell nearly 29% to 9,714 units from 13,702 units.

On the other hand, utility vehicle production — including models like the Brezza, Ertiga, and Fronx — rose by 19% to 72,640 units, reflecting strong demand. However, the company is witnessing a significant decline in demand for entry-level cars.

Maruti Suzuki Chairman R.C. Bhargava noted that affordability is a major concern for small car buyers. “Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?” he said.

“To boost demand, small cars have to become more affordable,” Bhargava added. “It is not the case that India has become affluent and everyone wants to buy more expensive cars.”

Maruti Suzuki's Q4FY25 numbers came in line with estimates

The company reported a consolidated net profit of ₹3,911 crore for the January–March 2025 quarter, 1% lower than ₹3,952 crore in the same period last year. Revenue from operations rose 6.6% year-on-year to ₹40,920.1 crore, compared to ₹38,471.2 crore a year ago.

Following the Q4FY25 results, the company’s stock target price was revised downward to ₹12,886 from ₹13,290 by Japanese brokerage firm Nomura, while retaining its ‘Neutral.’ rating on the stock. Axis Securities also reduced its target price to ₹11,170 from ₹12,065 but maintained its ‘Buy’ rating.

(With inputs from PTI)

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