Maruti Suzuki India Limited, the market leader in the passenger vehicle segment, saw its shares rise by nearly 3% today after reporting its highest monthly wholesales for the ongoing fiscal year. The company sold 173,599 vehicles in January 2025, registering a 4% year-on-year (YoY) growth compared to 166,802 units in January 2024.
January Sales Highlights:
- January 2025 wholesales: 173,599 units (up 4% YoY)
- Previous monthly best in FY25: October 2024 with 159,591 units
The strong January performance comes on the back of an improving demand environment after a slow start to FY25. The first quarter (April-June 2024) saw a marginal 1% YoY growth with 414,055 units. However, Q2 FY25 (July-September 2024) witnessed a 7% decline. The trend reversed in Q3 FY25 (October-December 2024), where dispatches grew by 6% YoY to 431,020 units, signaling a revival in demand.
Key Segment Performance:
- Hatchbacks: While demand for entry-level models like the Alto and S-Presso (14,247 units, down 11% YoY) remains sluggish, mid-range hatchbacks (Wagon R, Baleno, Swift, Ignis, Celerio) and the Dzire sedan saw robust growth with 82,241 units sold, up 7% YoY.
- SUVs and MPVs: The utility vehicle portfolio, including models like Brezza, Ertiga, Grand Vitara, and Invicto, clocked 65,093 units, up 5% YoY.
- Eeco van: Continued steady sales with 11,250 units, though down 7% YoY.
Cumulative FY25 Performance:
- April 2024-January 2025: Total of 14,49,233 passenger vehicles sold
- SUV and MPV contribution: 594,056 units, up 12% YoY
- Car and sedan sales: Down 9% at 741,707 units
Maruti Suzuki’s overall flat growth in the first 10 months of FY25, compared to the same period last year, highlights the critical role its UV segment plays in offsetting declines in hatchbacks and sedans.
Positive Outlook Post-Budget Announcement:
The recent relief in income tax announced in the Union Budget 2025-26 is expected to benefit Maruti Suzuki and other automakers. With no tax on incomes up to Rs 12 lakh, disposable income is likely to increase, potentially boosting vehicle purchases in the coming months. This fiscal incentive, combined with Maruti’s improving product portfolio, positions the company well for sustained growth ahead.
