Maruti’s July car sales fall by a shocking 33.5%, despite heavy discounts
Maruti Suzukireports a year-on-year decline by 33.5% in its monthly sales.
- It has done worse than market estimates of 20.9%.
- India’s largest car manufacturer Maruti Suzuki’s profits for the first quarter of FY20 also fell by 27.3%
Maruti’s sales are worse than what the market expected. Market research firm Emkay Global forecasted that its year-on-year sales would fall by 20.9%.
This fall is in spite of increasing discounts. Bowing down to the intense sales pressure, Maruti had also been increasing its ‘total cash discounts’ offered to consumers. While Alto models saw an 8% increase in discounts as compared to June, the Celerio Automatic and Dzire Diesel versions saw a steep increase of 23% and 27% respectively.
India’s largest car manufacturer Maruti Suzuki’s profits fell by 27.3%. It total sales for the first quarter of FY20 fell by 17.9% as compared to the same quarter last year.
July brought no cheer for carmakers who are hoping for a possible turnaround. “Volume performance is expected to remain weak across segments due to a high-base effect, increasing cost of vehicle ownership, monsoon deficit and financing issues,” said a report by Emkay Global.
Popular on BI
- Twitter, Tiger Global, Tencent and others have pumped in over $900 million into India’s vernacular social media platforms in a year
- ICC T20 World Cup 2021: India to bat first as Pakistan wins toss and elects to field
- Biden hosting budget talks in Delaware with Schumer, Manchin
- Aryan Khan case: Witness claims NCB allegedly demanded bribe from Shah Rukh Khan to release his son
- Rishi Sunak on spending spree on skills, healthcare in UK Budget