Maruti Suzuki expects passenger vehicle sales to expand in double digits in FY23
- IBEF
- March 11, 2022
Maruti Suzuki, which sells one out of every two cars on Indian roads, anticipates passenger vehicle sales to grow by double digits in FY23, supported by robust consumer demand and improved chip supply.
The market is expected to rise by double digits for the second year in a row, bringing it closer to the previous high of 3.7 million units.
Maruti Suzuki hopes to maintain its strong growth momentum in FY22, with the help of a new line of SUVs – both under and over four metres long.
Shortages of semiconductors, a critical component for new-generation automobiles, had slowed global auto production. Due to the chip shortage, Maruti Suzuki lost around 90,000 units in manufacturing between October and December. The situation is gradually improving, and the company is seeing solid bookings and currently has a 270,000-unit order book.
Maruti Suzuki currently holds a 23% market share in the entry-level SUV sector. It does, however, have little presence in the midsize SUV sector, accounting for only 4-5% of the market. As a result, the company's overall presence in the category has dropped to 12-13%.
The company will be entering the fast-growing 4.2 metre SUV segment to shore up volumes and recoup market share.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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