Maruti Suzuki India has recorded its highest-ever annual sales for the calendar year 2017 amid the effects of three major shocks the industry encountered during the year.

The company has posted 15 per cent growth in its passenger vehicle (includes cars, utility vehicles and vans) sales at 1,602,522 units for January-December 2017, compared with 1,394,972 in 2016.

The 1.6 million-plus sales in 2017 is its highest number achieved in any calendar year.

Disruptions

Starting with the effects of demonetisation in early 2017, the industry faced the Supreme Court’s ban on BS-III vehicles in March. And then came the implementation of GST in July. These periods saw volatile demand for the PV industry. But Maruti managed to pull it off, to bring back the momentum in sales, aided by strong acceptance of its new models.

A good monsoon also provided the much-needed respite with improved rural sales. After that, the festival season demand too spurred sales.

Last calendar year, Maruti toppled Mahindra & Mahindra as the largest UV brand. Maruti’s UV sales volumes reported 40 per cent increase to 242,465 units in 2017 from 173,746 in 2016.

M&M’s UV sales fell to 228,683 units in 2017 from 229,050 in 2016.

Maruti has now become the leader in both the car and the UV segments in India.

The firm also witnessed its market share cross 50 per cent in 2017. While final industry data is awaited for 2017, Maruti’s domestic PV market share increased by 300 basis points to 50.4 per cent during the first eight months (April-November) of 2017-18 fiscal.

First-time buyers

Despite intense competition, Maruti is still an attractive brand for a majority of first-time buyers. The share of first-time buyers in sales increased to 50 per cent in September quarter this fiscal as against an average 42 per cent in the past three years.

Analysts expect Maruti to maintain its momentum in sales and market share, led by a recovery in rural demand and support from new launches.

Related Topics
comment COMMENT NOW