India: Maruti Suzuki's sales volumes down nearly 10% q-o-q in Q3FY'24

In the calendar year 2023, Maruti Suzuki has achieved a significant milestone by surpassing an annual sales figure of 2 million units for the first time. This accomplishment was accompanied by the highest-ever nine-monthly sales volume, net sales, and profit.

The company plans to increase their capacity to 4 million units by 2031. The comany has initiated the development of its forthcoming 800-acre manufacturing plant in Kharkhoda, Sonipat, Haryana with an initial production capacity of 2.5 lakh units. The initial phase of the plant is slated to commence operations in 2025. Additionally, the facility is strategically planned with the flexibility for expansion, ultimately reaching its maximum production capacity of 10 lakh units.

Sales Volume decreases q-o-q: In Q3FY24, the sales volume experienced a quarter-on-quarter decline of 9%, reaching 501,207 units compared to the previous quarter's 552,055 units. However, on a y-o-y basis, there was a noteworthy increase of 7.6%, as the sales volume rose from 465,911 units during the corresponding period last year.

During Q3, the Company achieved its highest-ever quarterly export figures, with a total of 429,422 vehicles sold domestically and 71,785 vehicles exported.

The cumulative sales volume for 9MFY24 amounted to 1,551,292 units, reflecting a 6.9% growth from the 9MFY23 figure of 1,451,237 units.

Highest ever net sales q-o-q basis: In Q3, the net sales experienced a decline of 10.3%, amounting to INR 318,600 million, compared to INR 355,351 million in Q2FY24. On a y-o-y basis, there was a substantial increase of 14.4%, rising from INR 278,492 million in the corresponding period last year.

Within the domestic market, the passenger vehicle sales exhibited a growth of 6.3%. Notably, the utility vehicle (UV) segment led the way with an impressive growth of 59.6%, followed by the Van segment with a commendable 24% growth. The quarter also saw the highest-ever sales of CNG vehicles, surpassing 127,000 units. However, the mid-size segment and mini segment recorded declines of 68.2% and 48.9%, respectively.

Operating EBITDA increases q-o-q: The company's operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was recorded at INR 31,562 million in Q3, fell by 20.9% on q-o-q basis against INR 39,901 millions in Q2FY24. However, EBITA surged by 48.7% y-o-y from INR 21,230 millions CPLY.