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Lockdown impact: Weak volumes to aggravate margin pressures for Maruti

Shift towards entry-level segment a positive given its contribution to revenues

Maruti Suzuki Swift
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Higher selling prices due to BSVI transition, insurance costs and road tax in some states dented sales volumes, especially in the entry level segment

Ram Prasad Sahu
Maruti Suzuki’s March quarter (Q4FY20) show was dented by muted volumes and higher discounts. While the automaker reported average volumes of 150,000 units in January and February, the lockdown and subsequent production cut led to a 44 per cent dip in March volumes, compared to the average. 

Higher selling prices on account of the BS-VI transition, insurance costs, and road tax in some states hit volumes, especially in the entry-level segment. The mini and compact segments — which account for 73 per cent of volumes — fell 11 per cent YoY in the quarter, and 16 per cent in FY20.

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