Tuesday, March 1, 2011

A new milestone: Maruti Suzuki crosses 1mn mark in Sales

Maruti Suzuki becomes the only Indian car maker to have crossed one-million mark in sales as it sold 10.37 lakh units in the first 10 months of FY 2010-11.

Maruti Suzuki, the home-grown car giant which began life as a state-owned enterprise but later became a subsidiary of Japan’s Suzuki Motor Corporation, a few years ago, has scripted a new success story as it becomes the first Indian car maker ever to have crossed 10 lakh or 1 million mark in sales. The company clocked sales of 10.37 lakh units in less than 10 months of the current fiscal year 2010-11.  

Continuing with its robust performance so far during the fiscal, India’s largest car maker, which accounts for one in every two cars sold in the country, has reported a jump of nearly 16% in its overall sales (including domestic as well as overseas sales) to 1,11,645 units in February 2011 against 96,650 units in the same month a year ago. Further, Maruti’s domestic sales grew higher at about 20% to 1,01,543 units from 84,765 units, during the same period. Though its exports declined by 15% to 10,102 units in February’11 from 11,885 units in the same month of the previous fiscal; which has resulted from the company’s recent shift in focus from overseas markets to the Indian market to meet the rising domestic demand. Also, expectedly, sales of Maruti 800, which for long had remained its bread-and-butter model, continued its downward journey, falling by 15% to 2,712 units from 3,178 units, during the said period.

Sticking to the basics: Key to success

The company’s recipe for success in overtly competitive Indian market has remained much the same: to make practical, fuel-efficient and affordable cars. This strategy has once again been vindicated by the success of its Ritz, a premier compact car, which crossed one-lakh mark in sales in October last year, in just 17 months since its launch in May 2009.
Besides, a huge network of service centers and lower maintenance costs too have helped it sustain its market leadership for so long. 

In for serious competition, ahead

However, that is not to say that there are no pain points. While one hand Maruti’s product portfolio boasts of such successful models as Swift, D’zire and SX4, it also has laggards in the form of Versa and Zen Estilo.

Also, with MNC rivals like Ford and GM and domestic war horse Tata Motors now firing on all cylinders to grab bigger pie in the small car market segment, Maruti can ill-afford to rest on past laurels. 

Ford India’s February’11 sales jumped nearly three-fold to 9,293 units from 3,223 units in the same month of the previous fiscal, led by strong sales of its small car, the ‘Phenomenal’ Figo. Tata Motors, India’s largest auto manufacturer, too reported a rise of 12% in its February sales, y-o-y, propelled by its Nano car, whose sales jumped 101% to 8,262 units, during the said period. 

And with two prestigious launches, which include Toyota’s much ambitious small car, Liba, and, Honda’s little cutie, Brio, barely a few months away, Maruti Suzuki is in for some serious competition ahead. 

Amy, Chief Editor

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