Jan. 4: Maruti Suzuki, India’s largest car maker, joined peers in reporting robust sales for December, underlining the momentum in one of the fastest growing auto markets.
Maruti and rivals including Tata Motors and Mahindra & Mahindra face tough competition as global carmakers are expanding their operations in India with the launch of an array of models aimed at tapping India’s growing middle-class.
Speaking about the Indian market, auto analyst at Brics Securities, Mr Umesh Karne, said: “India is still a small market, but it will boom in the next five to seven years. That growth potential is drawing all the car makers.”
Maruti, 54.2 per cent-owned by Suzuki Motor Corp, said on Tuesday that its sales rose 17 per cent to 99,225 vehicles in December versus a year ago. “The competition has been building up for some years now, but the key parameters remain the same — good products, competitive pricing and good after-sales service,” Mr R.C. Bhargava, chairman of Maruti Suzuki, said.
“Our sales numbers would have been higher were it not for a six-day planned maintenance shutdown in December,” Mr Bhargava said. Domestic passenger vehicle sales have grown 32 per cent between April and November, according to industry body Society of Indian Automobile Manufacturers. Industry data through December will be released next week.
Maruti’s top-selling car, the small Alto is targetting an annual production of 1.85 million by end-2012. Most carmakers, including Indian units of foreign companies, posted double-digit percentage growth figures in December.
A report by Fitch Ratings said the passenger vehicle category would grow between 12 and 15 per cent in 2011, driven largely by a growing middle class and also due to easier financing options.