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Maruti Suzuki Production On The Recovery Track; Down By 19.19 Per Cent In July 2020

At 19.19 per cent, the year-on-year (YoY) slump in Maruti Suzuki's production last month is much lesser than the 55 per cent YoY production decline it recorded in June 2020. It has witnessed a month-on-month (MoM) uptick of 162.63 per cent in July 2020 in production numbers.

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Maruti Suzuki hopes that the festive season will bring in better numbers and improve production further

Highlights

  • Maruti Suzuki's YoY production decline in July is lesser than June 2020.
  • It has recorded a triple-digit MoM production growth in July 2020.
  • Production of entry-level hatchbacks have gone up.

India's largest carmaker- Maruti Suzuki is gradually recovering its production numbers, which in the past few months witnessed a huge slump owing to the coronavirus crisis. Of course we cannot expect the numbers comparable to last year but the momentum is building up. Maruti Suzuki like other automakers is building up its inventory level ahead of the festive season, however, it has registered a year-on-year decline in production of 19.19 per cent in July 2020. The slump in production last month is much lesser than the 55 per cent YoY production decline it recorded in June 2020.

Also Read: Maruti Suzuki S-Cross Petrol Launched In India

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Maruti Suzuki has recorded a triple digit uptick in month-on-month production numbers.

Ahead of the festive season, Maruti Suzuki has manufactured 1,07,687 units in July 2020 as compared to 1,33,265 units manufactured in the same month last year. Just to give you an idea about the recovery in production numbers, Maruti Suzuki manufactured 50,742 units in June 2020 as compared to the 1,33,265 units in July 2020, witnessing a month-on-month (MoM) uptick of 162.63 per cent. 

Also Read: Demand For Cars Under ₹ 7 Lakh To Go Up Post-Lockdown: carandbike Survey

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Entry-level vehicles have recorded growth in production numbers.

In line with the carandbike survey conclusions, demand for entry-level vehicles is expected to soar owing to the coronavirus crisis which has shifted people's preference towards personal mobility and that is reflected in the production figure as well. Production of mini hatchbacks- Alto and S-Presso in July 2020 went up by 23.32 per cent at 20,638 units as compared to 16,735 units manufactured in the same month last year. Production of compact vehicles such as the new WagonR, Celerio, Swift, Dzire, Ignis, Baleno and the Glanza (Toyota badged Baleno) declined by 29.88 per cent at 55,390 units against 78,998 units manufactured a year ago. Production of the Ciaz compact sedan went down by 57.70 per cent at 1479 units as compared to 3497 units manufactured a year ago.

Also Read: 2020 Maruti Suzuki S-Cross Petrol: Variants Explained

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Production of utility vehicles witnessed a marginal decline.

The utility vehicle segment has also been impacted during the crisis. In July 2020, the utility vehicle segment with updated products like the new Vitara Brezza petrol, the recently launched S-Cross petrol hybrid, Ertiga and XL6 among others recorded a marginal decline of 1.71 per cent at 19,464 units as compared to 19,130 units manufactured a year ago. Production of the Eeco van too went down by 26.49 per cent at 8708 units as compared to 11,847 units. Moving to the commercial vehicle segment where the Super Carry is the single light commercial vehicle in Maruti's portfolio, its production went down by 14.02 per cent at 2342 units as compared to 2724 units which were manufactured in the same month a year ago.

Also Read: Car Sales July 2020: Maruti Suzuki Sells 1.08 Lakh Units

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Maruti Suzuki had recorded a marginal decline in July 2020 sales.

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In terms of sales, Maruti Suzuki India sold 108,064 units in July 2020 which is a MoM growth of 88.2 per cent as compared to the 57,428 units sold in June 2020. However, it's a marginal decline of 1.1 per cent on a YoY basis when compared to 109,264 units it sold in July 2019. The company had mentioned that the sales are gradually picking up as dealerships are ramping their operations and this is further aided by the pent up demand.

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