Maruti Suzuki October 2016 Sales Fall 0.3%

Maruti Suzuki disappointed the market experts with its October sales despite being a festival month (Dussehra and Diwali). It sold 1.33 lakhs vehicles during the month, down 0.3 per cent compared with 1.34 lakhs units sold in year-ago period, dragged by exports and muted growth in domestic sales. It was worst on month-on-month basis as sales fell 10.3 per cent.

September sales had grown 31 per cent. Exports in October plunged 23.7 per cent year-on-year and 15.2 per cent month-on-month to 10,029 units. Domestic sales increased 2.1 per cent to 1.23 lakhs units compared with corresponding period of last fiscal but dropped 9.9 per cent from previous month.

Nomura had estimated Maruti to show 7.3 per cent growth in the month October sales with domestic sales rising 10.7 per cent. Utility vehicles, especially recently launched Vitara Brezza along with S-Cross continued to be leader in sales growth, showing a whopping 90.9 per cent rise over a year-ago period.

Ciaz, which comes under mid-size segment, also reported a 8 per cent growth but other segments were down. Overall passenger cars sales declined 5.2 per cent as mini cars (Alto, WagonR) registered a 9.8 per cent degrowth, compact cars segment showed a 1.8 per cent and super compact (Dzire Tour) down 27.4 per cent.

The company sells Swift, Ritz, Baleno, Dzire and, Celerio under compact car segment, which contributed more than 37 per cent to overall sales. Even vans sales (Omni, Eeco) showed a 6.5 per cent degrowth in the month gone by. Maruti said under the super carry segment, which recently launched, it sold around 80 units of light commercial vehicles against 44 units sold in the month September.

Meanwhile Maruti share price is trading at Rs 5,894.90. The share price today made a 52 week high of Rs 5,974.00 in today’s trading session.

Source: www.dynamiclevels.com