New Delhi: Maruti Suzuki India Ltd on Friday reported a 29.3 per cent increase in total sales volume for the first quarter of FY27, driven by robust growth in domestic passenger vehicle sales and exports, even as higher material costs and the impact of geopolitical tensions weighed on profitability.
The country’s largest carmaker said its board has also approved four compressed biogas (CBG) manufacturing projects in the first phase with a total investment of Rs 561 crore to strengthen its clean energy initiatives.
The company said domestic sales of small cars grew 34.1 per cent year-on-year during the April-June quarter, while SUV sales rose 44.6 per cent and exports increased 28.6 per cent. Its domestic market share improved by 2.3 percentage points to 41.2 per cent.
Maruti Suzuki attributed the higher sales volumes to the commissioning of its second manufacturing plant at Kharkhoda, which helped meet rising demand. Despite the increase in sales, dealer inventory remained at around 13 days at the end of the quarter.
Net sales for the quarter rose 36 per cent to Rs 49,959.1 crore from Rs 36,620.6 crore in the corresponding period of the previous financial year.
However, net profit declined to Rs 3,352.1 crore during the quarter from Rs 3,758.1 crore a year earlier as rising material costs, exacerbated by the war-related disruptions, increased input expenses.
The board also approved four CBG manufacturing projects with a budget of Rs 561 crore in the first phase. The company said it would consider expanding its CBG manufacturing capacity based on the experience and performance of these projects.
