Maruti shares tank 6% on marginal decline in February sales
Shares of Maruti Suzuki India (MSI) on Wednesday tumbled 6 per cent after the company reported a drop in total wholesales in February.02-03-2022
02-03-2022
MARUTI SUZUKI INDIA LTD. - 532500 - Production In February, 2022
Dear Sir/Madam, Please find enclosed herewith as Annexure - "A", the production figures of the Company for the month of February, 2022. Kindly take the same on record.02-03-2022
MARUTI SUZUKI INDIA LTD. - 532500 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Maruti Suzuki sales in February 202201-03-2022
Maruti Suzuki: Genuine accessories available online in over 100 cities
The company said users can search accessories based on the vehicle model, variant and product category28-02-2022
Maruti Suzuki drives in new WagonR: Check price, specifications
The country's largest carmaker Maruti Suzuki India (MSI) on Friday launched the updated version of its hatchback WagonR priced between Rs 5.39 lakh and Rs 7.10 lakh (ex-showroom).25-02-2022
After several weak quarters, Maruti Suzuki gears for recovery
Maruti Suzuki reported flat YoY revenue growth in Q3FY22, with a high double-digit YoY fall in net profit. Amid high raw material cost inflation, operating margin expanded 250 basis points YoY. This unexpected surprise pleased investors, leading to a 7% jump in Maruti Suzuki’s stock post the result announcement. Maruti Suzuki aims to get back its 50% market share in the Indian passenger vehicle (PV) market which it lost in 2019. While robust exports and growth in the CNG segment indicate a healthy growth trajectory, a lot will depend on Maruti Suzuki’s new sports utility vehicle (SUV) models which are expected to launch in FY23. With intense competition from Mahindra & Mahindra (M&M;), Tata Motors, and Hyundai Motors, Maruti Suzuki has a tough fight on its hands. Quick Takes: Operating margins at 6.7% improved 250 bps sequentially due to lower discounts, cost efficiency efforts and low raw material cost inflation in Q3FY22 Exports constituted 15% of total volumes and more than doubled YoY in December 2021 quarter Maruti Suzuki’s order backlog stands at 2,64,000 in Q3FY22 of which CNG vehicles constitute 44% of total bookings The company is expected to launch 3-4 new SUV models within two years Maruti Suzuki’s parent Suzuki Corporation is expecting 3% volume growth in FY22 from its India business as semiconductor chip shortage recedes Capex of Rs 3,000 crore to be incurred in Q4FY22 High average selling price aids revenue and operating margin performance Maruti Suzuki hiked prices 5-6 times over the past year. Average selling price (ASP) increased 14% YoY, supporting revenue growth in Q3FY22. Thus, even with a 13% YoY volume fall in the December 2021 quarter, revenues were flat. Revenues came in at Rs 23,253 crore in Q3FY22. Operating margins at 6.7% were down 280 bps YoY, but improved 250 bps sequentially in Q3FY22 due to cost efficiency efforts, lower discounts and receding raw material price inflation. Maruti Suzuki’s raw material cost as a percentage of sales moderated over the past three quarters. Steel prices fell significantly in November and December 2021 and precious group metals (PGM) prices stabilized further in Q3FY22. But steel prices are firming up again and are expected to impact margins in the March 2022 quarter. Net profit was down 48% YoY at Rs 1,042 crore impacted by lower non-operating income (down 67% YoY) and fall in volumes in the December 2021 quarter. Exports on a strong growth trajectory Maruti Suzuki exported 2,05,450 vehicles in CY21, the highest ever exports in any calendar year by the company. Exports constituted 15% of total volumes and more than doubled YoY in the December 2021 quarter. Exports revenues at Rs 3,343 crore grew 154% YoY in Q3FY22. Rahul Bharti, Executive Director at Maruti Suzuki said, “A three-pronged strategy, more number of products, more markets and more network density within those markets, generated good dividends for us.” According to the management, global partner Toyota’s distribution network also aids Maruti Suzuki’s export growth. Strong growth in South Africa (contributing one third of export volumes), Chile, Bolivia, Colombia, and North African countries aided by recovery from Covid-19 led to a strong export trajectory for Maruti Suzuki over the past 5-6 quarters. Maruti Suzuki is expected to become the largest car exporter in CY22 after a gap of 11 years. Semiconductor chip shortage impact was also lower on exports with volumes rising consistently over the past five quarters. Bharti said, “We were able to largely meet export market demand because those particular semiconductors were not used in export models.” While exports are on a strong growth trajectory, Maruti Suzuki’s domestic volumes give a different picture altogether. Semiconductor challenges ease, new SUV models awaited by the street Maruti Suzuki reported a domestic volume fall of 22% YoY in Q3FY22. Maruti Suzuki’s mini and compact car volumes fell 29% YoY, midsize was down 26% YoY and utility vehicle (UV) volume growth was up 5% YoY in Q3FY22. The company could not produce 90,000 vehicles due to semiconductor chip shortage in the December 2021 quarter. According to management, chip shortage is now gradually receding, evident from the improving wholesale volumes over the past three months. Though the semiconductor chip shortage impact was visible across the entire auto industry, players like M&M; and Tata Motors are on better footing. M&M;’s passenger vehicle (PV) domestic wholesale volumes fell 3.5% YoY and Tata Motors reported stellar 44% YoY growth in Q3FY22. Unlike Maruti Suzuki, which is highly dependent on the mini and compact car segment which together constituted 63% of total volume mix in Q3FY22, Tata Motors and M&M; are major SUV players which aided their wholesale and retail volume growth. Maruti Suzuki’s volume growth challenges are not new. Lower customer preference for entry level cars, lack of new product launches (the last product launch S-Presso was in 2019) and low presence in the SUV segment diminished Maruti Suzuki’s market share in the PV market. Entry-level cars are no longer the bread and butter segment for car manufacturers - SUVs and premium hatchbacks are now the key revenue contributors. Entry level segment (Alto 800 and S-Presso) reported lower volumes in Q3FY22 as customers conserved money for health emergencies due to Covid pandemic-related uncertainty. The company has been losing volumes in this segment since 2015. Entry level car segment constituted 16.6% of Maruti Suzuki’s total domestic volumes in FY21 down from 36% in FY15. SUV market share in the PV market grew from 26% in 2019 to 38% in Q3FY22. The SUV segment is expected to touch 42-43% market share in the next five years. Customers are preferring SUVs for their high ground clearance, spacious interiors, style and improved safety standards. According to Shashank Srivastava, Senior Executive Director, Marketing and Sales at Maruti Suzuki, Maruti’s market share without the SUV segment stands at 65%. Maruti Suzuki’s SUV segment consists of just two SUVs, Vitara Brezza (compact) and S-Cross (mid-size SUV) among 45 SUV brands in the PV market. In the last two years, more than 20 SUVs were launched by various OEMs. It's the SUV space which has pulled the company down, Srivastava agreed. The Vitara Brezza is seeing good volumes in the compact SUV segment. The lone Maruti Suzuki SUV competes with the likes of Hyundai Venue, Mahindra Thar, Tata Punch, Mahindra XUV700 and Kia Sonnet to name a few. In the highly competitive mid SUV segment, Maruti Suzuki’s presence is low as S-Cross is not a strong competitor to Hyundai Creta, Kia Seltos, MG Hector, Tata Safari and Mahindra Scorpio which rule the roost. Maruti Suzuki’s overall market share in the SUV segment is low at 13%. The management is working to fill up these white spaces in its product portfolio. Maruti Suzuki is expected to launch the compact SUV Jimny; another SUV being developed with Toyota, a 7-seater utility vehicle, a compact SUV on the Baleno platform and upgrading Alto and Vitara Brezza in the next two years. The upgraded Baleno is expected to be launched immediately with the goal of competing with Hyundai i20, Honda Jazz and Tata Altroz in the premium hatchback segment. Maruti Suzuki’s cheapest car is Alto 800 available below Rs 3 lakh, and the most expensive is Maruti XL6 at Rs 12 lakh. The company successfully captured customer loyalty in the mini and compact car segment by providing popular models like Alto, Swift, WagonR, Celerio, Ignis and Baleno at various price points to customers. This needs to be replicated in the SUV segment. The company needs to increase its volumes in the SUV segment by launching strong aspirational products. High share of SUV cars (priced between Rs 8-20 lakh) in the product mix will help increase Maruti’s average selling price and improve operating margins. CNG growth to make up for lost diesel volumes Compressed natural gas (CNG) vehicles constituted 15% of sales in Q3FY22 and the company has 80% market share in the CNG PV market. Maruti has been steadily capturing the CNG market and has 8 CNG models in its product mix. CNG market growth is attributed to high petrol-CNG price differential which currently stands at roughly Rs 30 and the government's aggressive CNG pump expansion. Petrol prices, stagnant for the past 100 days, are expected to rise significantly after the conclusion of assembly elections in March, increasing the petrol-CNG price differential further. Brent crude breached the $100 mark, the highest level since 2014 after Russia invaded Ukraine. The government plans to increase CNG pumps from the current 3800 to 9,500 pumps by 2025. Maruti stopped manufacturing diesel vehicles from March 2020 which contributed 25% to total volumes in FY19. Hopefully, CNG contribution should move ahead of diesel volume levels of FY19. While Tata Motors is betting big on electric vehicles with 67% of its vehicle portfolio electrified, Maruti Suzuki is more focused on CNG and Hybrid electric vehicles (HEV). The company is developing a HEV in collaboration with Toyota, to be launched in the next 2-3 years. After reporting a volume fall of 7% and 16% YoY in FY21 and FY20 respectively, parent Suzuki Corporation is expecting 3% YoY volume growth in FY22 from its India business as chip shortages recede. Maruti’s stock went up 2% after this news reached the street. Investors are hoping Maruti Suzuki can beat this target25-02-2022
MARUTI SUZUKI INDIA LTD. - 532500 - Corrigendum To The Press Release Dated 25 February, 2022
Corrigendum to the Press Release dated 25 February, 202225-02-2022
MARUTI SUZUKI INDIA LTD. - 532500 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Dear Sir/Madam, Please find enclosed herewith as Annexure -"A", a copy of the press release being issued today. Kindly take the same on record.25-02-2022
Maruti Suzuki expects sales momentum to continue with better chip supplies
Maruti Suzuki India Managing Director and CEO Kenichi Ayukawa said that the company could even reach the 2018-19 peak volume level if the chip supply remained adequate23-02-2022
MARUTI SUZUKI INDIA LTD. - 532500 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Dear Sir/Madam, Please find enclosed herewith as Annexure -"A", a copy of the press release being issued today. Kindly take the same on record.23-02-2022