June is usually the lowest of this year’s statistics for the month of 2020 when Maruti stopped maintenance of biennial plant. According to the company’s monthly product filing, the product has come down to 23%.
The slide reflects extensive fatigue in the small car section, once the main base of Maruti, changes the preferences of customers of the sports utility vehicle (SUV) and premium models. According to the Society of Indian Automobile Manufacturers (SIAM), SUV is now 66% of the total sales mixture.
In addition, Maruti has a lack of electric vehicles in its model range. In that section, rival Tata Motors and Mahindra and Mahindra began.
Dealers say the level level on the outlets is slowly rising, especially for models such as Alto, S-Presso, Disease and Celerio, the automaker has been forced to regulate the output to prevent oversighting. “Despite the offering of attractive customers, there is a demand for many quarters in entry-level segment.”
The buyer’s preferences are changing
“The increasing price of ownership, changing customer aspirations and the saturation of the urban market is playing all the role.”
According to the July 1 report of the Kotak Institute of Equipment, Maruti’s domestic sales declined by 4.5% a year in the June quarter, and the sales of its smallest models declined by 36%.
The widespread market did not get better. According to data released by Siam on Tuesday, the sale of passenger vehicles in India by 8.4 per cent in the April-June period fell 8.4 per cent to 5 million units in April-June. Analysts said the approach of the small car is weak in the near future, and the portfolio of the products may need to be re -rating to align the manufacturers with the preferences of developing buyers.
SP ND P Global Mobility Director Puneet Gupta said, “In addition to the structural changes in the car market, they have become unpleasant for buyers as there is no fully new model introduction to the small car section.”
He said companies no longer pay attention to investing in new small car models, so it is impossible for manufacturers to sell cars at competitive prices due to strict rules on emissions and security, he said.
Brokerage Nomura Research has maintained its estimation for passenger vehicles and two -wheelers at 5% and 7% respectively for 26 growth. Kapil Singh of Nomura Research said in a letter, “We expect to improve the demand in the second half, low income tax and interest rates have dropped.”
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