Maruti Suzuki, India’s biggest carmaker, increased its discounts by 50% in the first quarter of FY25 to boost sales in a challenging market affected by a heatwave and low consumer sentiment. The average discount per vehicle rose to ₹21,700 from ₹14,500 in the previous quarter.
Despite offering higher discounts, Maruti Suzuki’s net profit for the June 2024 quarter jumped 46.9% year-on-year to ₹3,649.9 crore, driven by cost-cutting, lower commodity prices, and favorable exchange rates. Net sales also increased to ₹33,875.3 crore from ₹30,845.2 crore in Q1FY24.
The company’s EBIT margin improved from 10.8% in Q4FY24 to 11.1% in Q1FY25. Maruti Suzuki sold 521,868 vehicles in Q1FY25, a 4.8% rise year-on-year, with domestic sales up 3.8% and exports up 11.6%.
The demand for passenger vehicles was somewhat muted due to the heatwave and elections, but the company expects better sales with a good monsoon and the upcoming festive season. Maruti Suzuki’s rural market sales continue to outperform urban areas.
In April 2024, Maruti Suzuki added a new vehicle assembly line at its Manesar facility, increasing its capacity to 900,000 vehicles per year. A new biogas plant at Manesar also began operations in June 2024. The company launched new models like the Swift and the Dream Series Limited Edition to attract more customers.
Maruti Suzuki aims for low single-digit growth in passenger vehicle sales for the full fiscal year.
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