Maruti Suzuki Ramps Up Production, Bookings Surge Amid Festival Demand

Maruti Suzuki India Ltd. said on Wednesday it is working to increase car production to meet demand, which has surged following a cut in goods and services tax and the festival season. Partho Banerjee, the company’s Senior Executive Officer for Marketing and Sales, told reporters at a virtual press conference that the company will work on Sundays and additional holidays to serve customers.

Data shows production is already up. In September, Maruti Suzuki manufactured 201,915 units, up 26% on year and 27% on month. Passenger car bookings rose 28% on year in September, while utility vehicle output increased 27%.

The company received over 350,000 bookings in September and currently has more than 250,000 pending. Retail sales hit a record 165,000 cars in the first eight days of Navratri, with expectations to reach 200,000 in the next two days. In comparison, Maruti Suzuki sold 85,000 cars during Navratri 2024. The company also received 700,530 enquiries over the past eight days.

Banerjee noted that some of September’s demand is pent-up from August, when customers held back due to the GST rate reforms announced before Diwali. He said the demand is expected to ease slightly in the coming months.

The automaker is facing logistical challenges in delivering cars to dealerships amid the surge. Many cars shipped on September 22 are yet to reach dealers. Deliveries from factories are expected to complete within 20 days, with normalisation anticipated by October 10.

Despatches of sport utility vehicles also fell in September due to logistics issues, though retail sales were 32% higher than the average monthly sales from April to August. Response to the recently launched mid-sized SUV Victoris has been strong, with over 25,000 bookings and a 10-week waiting period.

Maruti Suzuki, a leader in the small car segment, has benefitted from the tax cut. Banerjee said small cars have seen strong traction despite expectations they would lag behind utility vehicles, with waiting periods now appearing for some variants.
The company had offered discounts in September exceeding the tax cuts to spur a motorisation trend, originally set to expire on September 30. These offers have now been extended to October 6.
In September, Maruti Suzuki sold 132,820 passenger vehicles in India, down 8% on year, primarily due to a 20% fall in utility vehicle despatches. Exports rose to 42,204 units, up 52% on year, more than double Hyundai Motor India Ltd., the second-largest exporter. The company exported just over 6,000 units of its electric SUV e Vitara in August and September combined.