"We recognized this challenge and enhanced our efforts to reach out to customers through various means. We raised our discount offerings, making our products even more attractive. As a result, despite the less than ideal market conditions, we could achieve retail sales nearly at par with the previous quarter,” Bharti said while addressing an investor conference.
He added that there are customers in the market who may be waiting for the festive season or an auspicious occasion. So the company is “increasing focus on improving retail sales”.
Maruti Suzuki’s average discounts during April-June 2024 quarter stood at INR 21,700 per vehicle, marking an increase of 50% when compared to INR 14,500 per vehicle in January-March 2024 period.
Regardless of the discounts, the carmaker reported a 48% rise in consolidated net profit to INR 3,759 crore for April- June FY25 quarter. The automaker had logged a net profit of INR 2,542 crore in April-June FY24. Consolidated revenue from operations for the company increased to INR 35,876 crore in June quarter as compared with INR 30,847 crore in the year-ago period. The net profit was achieved "on account of cost reduction efforts, favourable commodity prices and foreign exchange".
Marginal benefit from favorable commodity prices and foreign exchange were partly offset by higher discounts, Bharti said. During the quarter, the sales in the domestic market stood at 451,308 units, up by 4% over that in Q1FY24.
In June, ETAuto reported about the company's new strategy to sell small cars. To draw consumers to the small car segment, Maruti Suzuki introduced the new-gen Swift model and Dream Series Edition for three of its models during the quarter.
Bharti said the short term is muted for the auto industry, but Maruti Suzuki is “not worried” about it and will focus on delivering what the market needs.
The carmaker exported 70,560 vehicles during Q1 to generate a revenue of INR 4,481 crore. Regions like the Middle East, Latin America and Africa have shown growth for the company. For the full fiscal year, the target of achieving 3 lakh exports seems achievable. Jimny emerged as the largest export model for Maruti Suzuki during Q1.
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