Maruti Suzuki, India’s leading car manufacturer, reported a notable trend in the first quarter: one in three cars sold was powered by CNG. This shift reflects a growing acceptance of CNG vehicles among Indian consumers, a change that Maruti Suzuki’s management highlighted during a recent earnings call.
Key Highlights:
- CNG Sales:
- One-third of all cars sold by Maruti Suzuki were CNG models.
- CNG vehicles have surpassed diesel in popularity for the first time in India.
- Market Expansion:
- New regions like Rajasthan, Karnataka, Tamil Nadu, Madhya Pradesh, Kerala, and Bihar are showing significant growth in CNG vehicle adoption.
- The increase in CNG acceptance is not limited to budget models; even premium cars are available with CNG options.
- Production and Supply:
- Maruti Suzuki has increased the production of CNG vehicles, particularly the Ertiga, which has a high proportion of CNG variants.
Financial Performance:
- Net Profit:
- Q1 Net Profit: ₹3,650 crore, a 46.9% increase year-on-year
- Previous Year Q1 Net Profit: ₹2,485.1 crore
- Factors: Cost reduction efforts, favorable commodity prices, and foreign exchange gains
- Exports:
- Maruti Suzuki aims for a target of 300,000 vehicle exports in FY25.
- Q1 exports grew by 11.6% year-on-year to 70,560 units, capturing 40% of India’s total passenger vehicle exports.
Market Performance:
|
Metric |
Q1 FY24 |
Q1 FY23 |
Change (%) |
|
CNG Vehicles Sold |
33% of total sales |
– |
– |
|
Net Profit (₹ Cr) |
3,650 |
2,485.1 |
46.9% |
|
Export Units |
70,560 |
– |
11.6% |
|
Market Share in Exports |
40% |
– |
– |
Stock Performance:
- Maruti shares closed nearly 4% higher at ₹13,375 after announcing the results, marking a 31% rally over the past six months.
Rahul Bharti, Maruti’s Chief Investor Relations Officer, noted –
CNG is no longer seen as just a low-cost solution; it has become a preferred choice even in premium segments.