Maruti Suzuki June Sales fall 8.8%

Published: Friday, July 1, 2011, 12:14 [IST]

In a clear indication of India's largest car maker Maruti Suzuki struggling top come to terms with changing market situations, its June sales fell a whopping 8.8 per cent. Maruti Suzuki sales were slowing down considerable but had monthly sales were never been lower than corresponding periods in the previous year. Sales in June 2011 stood at 80,298 units as against the 88,091 vehicles it sold in June 2010.

This massive 8.8 per cent drop in Maruti Suzuki's sales is a result of the carmaker's exports taking a huge beating. Maruti Suzuki's exports this June stood at 10,278 vehicles as against June 2010's 15,279 units marking a 32.7 per cent drop in exports. Domestic sales fell 3.8 per cent to 70,020 units this June from the previous year's 72,812 units.

Maruti Suzuki is India's largest carmaker and it was expected that its sales would suffer as the government increased petrol prices by Rs.5. A majority of its models being petrol powered did not help Maruti Suzuki. While its diesel cars enjoy high demand, low availability triggered by the strike at Maruti Suzuki's Manesar plant increased waiting periods driving away customers.

Car sales in India were expected to be reduced further by the increased interest rates. Maruti Suzuki appears to have suffered sales losses also due to the fact that its competitors are offering more diesel powered cars. The Volkswagen Vento, Polo, Ford Figo, Toyota Etios all come with a choice of diesel engines. These carmakers also offered attractive schemes to attract customers. This surely seems to have helped reduce Maruti Suzuki's sales in June.

Maruti Suzuki shares fell 1.9% or Rs.22.90 to Rs. 1,137 During the Morning session at the Bombay Stock Exchange.

Article Published On: Friday, July 1, 2011, 12:14 [IST]

More from DriveSpark