Maruti Suzuki In Focus: Rising car costs have been impacting first-time car buyers, highlighting the importance of affordability in driving demand, Maruti Suzuki Managing Director and CEO Hisashi Takeuchi said.
Speaking to NDTV Profit, Takeuchi said the recent GST reforms demonstrated the “power of affordability” and noted that demand for small cars has shown good growth in the first four months of FY27. Entry-level car sales grew 100% during the period, he said.
Takeuchi's comments come as the auto industry looks to revive demand among price-sensitive buyers, particularly in the entry-level segment, where affordability remains a key consideration.
Beyond the domestic market, Suzuki has made India a global manufacturing hub for the e Vitara, with more than 46,000 units exported from India, Takeuchi said.
He also highlighted the company's growing contribution from greener technologies. CNG, electric and flex-fuel vehicles now account for 32% of Maruti Suzuki's overall sales, meaning one in every three cars sold by the company is a greener vehicle.
Takeuchi said Suzuki is also working on setting up more biogas plants in India, as the company looks to expand its portfolio of alternative and cleaner-fuel technologies.
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The comments underscore affordability and the shift towards greener mobility as two key themes for Maruti Suzuki, with stronger entry-level demand potentially providing a boost to the company's volumes going ahead.
On the bourses at around 1:32 pm, Maruti Suzuki shares price was trading 0.23% higher at Rs 12,871. In comparison, BSE Sensex was trading flat at 76,600 levels.
Maruti Suzuki Q1 Results Highlights
Maruti Suzuki India reported a decline in first-quarter profitability as a sharp rise in material costs weighed on operating performance, despite strong revenue growth.
Net profit fell 10.8% year-on-year (YoY) to Rs 3,352 crore from Rs 3,758 crore, while revenue from operations jumped 35.9% to Rs 52,456 crore from Rs 38,593 crore.
Operating performance remained under pressure, with Ebitda declining 14.5% to Rs 4,312 crore. Ebitda margin narrowed sharply to 8.2% from 13.1% a year ago, as material costs surged 46% to Rs 32,000 crore.
The results come as Maruti Suzuki MD Hisashi Takeuchi said rising car costs have been impacting first-time buyers, while recent GST reforms have highlighted the importance of affordability in driving demand.
ALSO READ: Maruti Suzuki Q1 Results: Profit Falls 11% As Material Cost Surges; Margins Shrink
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