Maruti Suzuki Share Price Rises 3% On December Sales Growth Led By Mini, Compact Segments

The share price of Maruti Suzuki India Ltd rose 3% after the automaker reported robust sales data for December, beating market expectations. The company sold a total of 1.78 lakh units in December, exceeding the estimated 1.49 lakh units and marking a 29% year-on-year growth from 1.38 lakh units sold in the year-ago period. 

Domestic sales rose 27% to 1.41 lakh units from 1.11 lakh units a year ago, while exports surged 39% to a monthly record of 37,419 units, compared to 26,884 units in the same period last year. 

Segment-wise, the mini car category, including models like Alto and S-Presso, witnessed a remarkable 190% growth, with sales reaching 7,418 units against 2,557 units in December 2022. The compact segment, comprising models such as Baleno, Celerio, Dzire, Ignis, Swift, and WagonR, recorded a 20% growth, selling 54,906 units compared to 45,741 units a year earlier. SUV sales also performed well, rising 21% to 55,651 units from 45,957 units last year. 

In November, Maruti Suzuki reported a 10% year-on-year rise in overall volumes, driven by a 20% increase in SUV sales and a 25% surge in exports. Volumes for the September-November period were up 5% compared to the previous year. 

Separately, Maruti Suzuki announced a significant production milestone for its Dzire model, surpassing cumulative production of 30 lakh units in a press release. This milestone was achieved in approximately 16 years and 11 months since the launch of the model. Previously, the Dzire reached 10 lakh units in April 2015 and 20 lakh units in June 2019. Other Maruti Suzuki models to cross the 30 lakh production mark include the Alto, Swift, and WagonR. 

Since commencing exports in October 2008, the Dzire has shipped around 2.6 lakh units to 48 countries, with markets including Latin and Central America, Africa, Southeast Asia, and the Middle East. 

Maruti Suzuki stock rose as much as 3.3% during the day to Rs 11,216.95 apiece on the NSE. It was trading 2.98% higher at Rs 11,181.90 apiece, compared to a 0.57% advance in the benchmark Nifty 50 as of 2:34 p.m.

It has risen 8.74% in the last 12 months. The total traded volume so far in the day stood at 0.6 times its 30-day average. The relative strength index was at 53.50.

Thirty-five out of the 49 analysts tracking the carmaker have a 'buy' rating on the stock, 11 recommend a 'hold,' and three suggest a 'sell,' according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 13,179, implying an upside of 17.8%.