Maruti Suzuki Cars May Become Cheaper Due to High Inventory Levels

Maruti Suzuki Cars May Become Cheaper
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21 August 2024, Kathmandu

India’s leading auto manufacturer, Maruti Suzuki India, is poised to potentially reduce car prices shortly.

Maruti Suzuki Cars May Become Cheaper

This comes as a result of increased production coupled with slower sales and high dealer inventory levels. In the first quarter of the financial year 2024-25, Maruti Suzuki ramped up production by 7.4%, producing 496,000 cars. Despite this boost, the company’s sales rose by a modest 1.2%, with 427,000 cars sold during the April-June period. This disparity has led to a substantial inventory surplus at dealerships.

The company attributes this excess inventory to lower-than-expected demand in the Indian market for the first quarter. To address this issue, Maruti Suzuki is adjusting its production strategies and considering price reductions to stimulate sales and reduce dealer stock. Suzuki Motor Corporation, the majority shareholder, has acknowledged this strategy in a recent conference call, indicating that price adjustments are being implemented to align with market conditions and inventory levels.

The Federation of Automobile Dealers Associations (FADA) has reported an excess of approximately 730,000 cars with dealers, equating to around two months’ worth of sales. However, the Society of Indian Automobile Manufacturers (SIAM) suggests that the actual surplus is closer to 400,000 units. Factors such as the general elections, heavy rainfall, and heat waves have contributed to the reduced demand this quarter. Nonetheless, with the festive season approaching, Maruti Suzuki anticipates a rise in demand and is optimistic about improved sales figures moving forward.

Maruti Suzuki Cars May Become Cheaper


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