Maruti Suzuki is a leading player in India’s automotive industry, renowned for its extensive range of cars and commitment to quality. Established in 1981, the company revolutionized the Indian car market by making automobiles more accessible to the masses. With a strong focus on innovation, Maruti Suzuki continually adapts to changing consumer preferences and emerging technologies, from fuel-efficient vehicles to electric mobility solutions.
Its widespread dealership network ensures robust customer support and service across the country. As a subsidiary of Suzuki Motor Corporation, Maruti Suzuki combines global expertise with local insights, positioning itself as a trusted brand among Indian consumers. The company’s emphasis on sustainability and advanced manufacturing practices further enhances its reputation in the automotive sector. The company also has the largest market share in India in terms of vehicles sold.
Share Price
Maruti Suzuki’s share price plunged after the company’s Q2 results failed to impress the Street. At 1:56 pm, Maruti Suzuki shares were trading 5.65% lower at ₹10,856.5 apiece on the NSE.
Q2 Results
Maruti Suzuki India, the largest passenger car manufacturer in India, on Tuesday reported a net profit of ₹3,069.2 crore for the second quarter of FY25, registering a fall of 17.4% from ₹3,716.5 crore in the same quarter last fiscal year. Maruti Suzuki’s revenue from operations in Q2FY25 increased marginally by 0.4% to ₹37,202.8 crore from ₹37,062.1 crore, year-on-year (YoY).
At the operating level, the auto major’s earnings before interest, tax, depreciation, and amortization (EBITDA) during the quarter ended September fell 7.7% to ₹4,417 crore from ₹4,784 crore, while the EBITDA margin compressed by 100 basis points (bps) to 11.9% from 12.9%, YOY.
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Auto Sales Data (September 2024)
Maruti Suzuki leads the Indian car market with 1,44,962 units sold in September 2024. The company holds a strong 40.4% market share, though it saw a slight decline of 3.9% compared to last year. Hyundai secured the second position with 51,101 units, while Mahindra showed impressive growth with 51,062 vehicles. Tata and Toyota rounded out the top five with 41,065 and 23,802 units respectively.
Maruti’s sales figures dominate its competitors. The company sold nearly three times more cars than its closest rival, Hyundai. Moreover, Maruti’s monthly sales surpassed the combined figures of Hyundai and Mahindra. Despite facing a small dip in growth, Maruti maintained its position as the undisputed market leader. The company’s vast dealer network and diverse product range help maintain this strong performance.
Conclusion
Despite market challenges, Maruti Suzuki remains a cornerstone of India’s automotive industry. However, recent financial results signal potential headwinds ahead. Yet, their strong foundation in customer service and product innovation continues to drive confidence. Furthermore, their commitment to adopting new technologies shows promise for future growth. Moving forward, the company’s ability to balance profitability with market leadership will determine its success. Additionally, their focus on sustainability might open new opportunities in India’s evolving car market.
Written By: Dipangshu Kundu
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