Monday, November 18, 2024
By Kamal Swami
Maruti Suzuki Records A Hike Of 10% In October Sales
The country's largest car manufacturer Maruti Suzuki, has recorded an increase of 10% in the sales of its entry-level models. According to sources, the Indo-Japanese carmaker witnessed a hike of 10% in its sales during October 2024. The reason for this increase is due to strong consumer demand in rural areas. The demand in urban areas remains discouraging.
The carmaker’s small car range including S-Presso, Alto K10, Celerio, and Wagon R, are sold through its Arena dealerships. According to Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, the company managed to stabilize declining sales in the first quarter and subsequently saw steady sales in the second quarter. "October brought positive momentum, achieving a nearly 10 per cent growth”.
The small and affordable car segment in India witnessed a decline in sales since the arrival of the pandemic, and dynammic shift towards SUVs. Currently, with 50% of total sales across the country SUVs dominate the passenger vehicle market in India.
However, the increasing interest of buyers in the rural areas for small cars is showing signs of recovery, which is the main reason of increasing sales for Maruti Suzuki. The sales statistics revealed by the company shows a strong growth of 31 percent in the rural market for October 2024. "Rural demand showed robust performance last month, reflecting a positive turnaround," Banerjee added.
On the other side, the demand for small cars in urban areas remains under pressure. A recent economic survey by the finance ministry indicated a slowdown in urban consumption, whereas rural areas are experiencing a gradual revival. In the words of Banerjee, during the first half of the current fiscal year, the rural market grew by 8 per cent, while the urban segment saw a 2 per cent decline.
There are many reasons behind the decline in urban sales can be due to various factors, including the impact of state elections, heavy monsoon rains in specific regions, and heat waves earlier in the year, which stopped car aspirants from visiting the dealerships. With the company preparing for the remaining months of the financial year, it believes to sustain the same growth in rural areas, along with combatting with the challenges of the urban market.
