Maruti Suzuki announced the big drop in sales in the month of May 2019, Except Super Carry, all other vehicles posted negative growth. Sales declined for the third consecutive month, the most since August 2012.
The Indian automotive industry has been facing tough times in recent months and it reflects on the carmakers’ volume sales in a big way. In April 2019, all the brands endured negative YoY growth except for Honda.
The second month of the new financial year doesn’t seem to be have improved either as the largest automaker in the country, Maruti Suzuki, has recorded 25.1 per cent YoY sales slump in May 2019. The Indo-Japanese manufacturer has registered a total of 1,21.018 units as against 1,61,497 units during the same month last year.
April and May months are taken into account (first two months of FY2020 combined), the de-growth was more evident as well. In comparison, 2,52,403 units were retail against 3,24,931 units with 22.3 per cent sales decrease.
Sales of compact cars dropped by 9% despite the fact that the company showing new Wagon R sales in the compact segment instead of the mini segment. Ciaz sales dropped by 10% as only 3,592 units were retail in May 2019 as against 4,024 units retailed in the same month last year. In the utility vehicle lineup also, Sales of Ertiga, Vitara Brezza and S-cross dropped by 25.3% and 29% sales drop registered in the van segment.
The company is targeting combined sales of 2 million PVs in the year FY2020. Aggressive model and sales strategy is 2020 goal is to be achieve. From the looks of it, that 2020 vision seems far away.
If there is a positive, then it is in the Super Carry small commercial vehicle’s numbers. At 2,232 units in May 2019, it has recorded 31 percent YoY growth, albeit on a low base.
All said and done, Maruti’s performance is not good news for the industry.