Maruti Suzuki India, the country’s largest passenger vehicle maker, sold 1.58 lakh units in March, totalling highest-ever volume for the financial year 2018-19.
The stock was quoting at Rs 6,806.90, up Rs 135.20, or 2.03 per cent, on the BSE. However, it has fallen 25 percent in last one year amid slowdown in sales volumes.
Maruti Suzuki sold 1,58,076 units in March 2019, a 1.6 percent decline against 1,60,598 units sold in March 2018 dented by weak performance in passenger cars barring compact segment.
Global investment firm Nomura had estimated the same at 1.58 lakh units for the month.
Domestic sales during the month declined 0.7 per cent to 1.47 lakh units and exports saw a major decline in March, down 12.9 per cent to 10,463 units YoY.
Maruti said passenger car sales dropped 6.9 percent to 1.03 lakh units in March 2019 YoY, dented by mini as well as mid-size car segments.
With this, the company said it ended 2018-19 with its highest ever total sales of 18,62,449 units a growth of 4.7 percent.
Commenting on the same, RC Bhargava, its Chairman told CNBC-TV18, that auto sales usually pick up after the general elections.
He expects a pick-up in sales soon but said it is tough to guess whether sales will be in single or double-digit in FY20 as the safety regulation rollout is making it difficult to predict the sales trend.
But reassuring investors, Bhargava said the company never has seen a successive decline in sales over the last two-to-three years.
Recent media reports indicate that the company cut its March production by 26 per cent and raised dealer commissions. Confirming this development, Bhargava said a company has adjusted production to manage inventory levels but said he was unaware of ‘higher dealer commissions being paid in March’.
On airbags being made mandatory for all vehicles from July 1, he said safety regulations have constantly been upgraded and the impact of new safety regulations on sales is yet to be ascertained.
with inputs from news agencies.