Maruti Suzuki India is witnessing strong growth in both the 18% and 40% GST segments, said Senior Executive Officer, Marketing & Sales, at the 66th Society of Indian Automobile Manufacturers (SIAM) Annual Convention in New Delhi.
While speaking to CNBC-TV18, he said, “GST 2.0 has been a very big reform and the objective of getting more customers to upgrade to cars is clearly working,” adding, “The basic objective of increasing motorisation and helping customers upgrade is playing out.”
On the industry outlook, he said, “There are challenges globally, but I would focus more on the tailwinds because they remain pretty strong for the auto industry.” He added, “This year’s growth also has to be seen in the context of the low base of last year.”
Bookings Keep Climbing
On demand, he said, “The industry is currently doing around 4.5 lakh units a month and I see no rhyme or reason why we should not sustain strong absolute volumes.”
He added, “For the second half as well, volumes should broadly remain at healthy levels,” and, “Bookings are very good and, so far, everything is moving northwards.”
On the festive season, he said, “Onam has been fantastic and we are looking at an even bigger festive season this time,” noting, “The demand indicators for the next two to three months are looking very positive.”
On the new Brezza, he said, “The response to the new Brezza has been amazing—we are getting almost 2,000 bookings a day,” adding, “We have reached nearly 60,000 bookings in just about 35 to 37 days, which is a very positive sign.”
Betting Big on Capacity
On expansion, he said, “Our capex this year is around 40% higher than the previous year,” and, “We have already commissioned two plants with a capacity of 2.5 lakh units each and are now ramping them up.” He added, “Over the next three to four months, we expect these plants to move closer to full capacity.”
On technology, he said, “Our stand is very clear—we are going to follow a multi-path strategy and have a play across technologies,” explaining, “We want to cater to all sets of customers, which is why we will not put all our bets on just one technology.”
On small cars versus SUVs, he said, “Many OEMs have written the obituary of the small car, but the numbers speak for themselves.”
He added, “Yes, SUVs account for around 57% of the market, but there is still another 43% of the market that cannot be ignored,” and, “By 2030, that non-SUV opportunity could still be around 2.7 million vehicles.”
He said, “Maruti will continue to have a play across small cars, premium hatchbacks, sedans, MPVs and SUVs,” noting that “both small cars and SUVs are contributing to our market-share gains.”
