The monthly sales of India’s largest car-maker, Maruti Suzuki, have reported de-growth in their monthly sales in May 2019. Along with the international market, their sales and growth in the domestic market have been reported to be equally bad.
The company sold about 1,72,512 units last year in May 2018, but the May 2019 sales have been poor with only 1,34,641 units sold last month. The decline has been as low as 25% sales as compared to the previous years and the other competitors. There was a major set-back the company faced from its entry-level segments which include the models like Alto and WagonR. These units were just about 16,394 units this year as compared to its sales the previous year which were around 37,864 units, making it down by 56.7%.
The sales of the compact segment cars like Swift, Celerio, and Baleno were down too by 9.2% with only 70,135 units sold as opposed to 77,263 in the previous year. The sale of the mid-sized sedans such as Ciaz, sold only 3,592 units this year.
The exports in May were down too by as much as 2.4% compared to the previous years. With the downfall in sales in all units, the Maruti Suzuki’ commercial vehicle, the Super Carrier was the one to bring some relief with an increase in its sales by 31%. With all the other cars facing a double-digit sales decline, the Super Carrier was the only one to keep the sales intact.
This greatly affected the stock of the company which faced a 22% decline in the market. This decline is greater as compared to its sales in the previous year. In the previous year, Maruti Suzuki was registered with highest sales ever. For the financial year 2018-19, the car sales were reported to be 1,862,449 units, whereas for the financial year 2019-20 the sales declined with just 1, 34,641 units sold in the month of May 2019. This decline affected the company as it changed the scenario of the passenger vehicle market. During the Financial Year-12 and the Financial Year 18, the vehicle market saw a growth of about 23%, growing from 2.62 million to 3.28 million, and Maruti Suzuki accounted for 97% incremental growth. The company’s annual sales increased to about 637, 000 in the six years, while the other industries were able to account a sales increase of just 20, 975.