Maruti Suzuki annual sales slump 12.3% in CY19, worst in a decade

During the year, the maker of the bestselling Baleno and Brezza, saw its sales volumes contract to 1.6 million units in the domestic market, from 1.8 million units a year ago. Maruti Suzuki India ended 2019 with a drop of 12.3 per cent in its annual sales. The fall, the has been  in almost a decade, came on the back of poor economic growth and a slowdown in overall consumption. India’s economy grew at an  4.5 per cent in the September quarter, the lowest in five years. It is the almost the poor performance of automobile industry and for the reason of happening of economic slowdown. 

But  2020, Maruti is more to be hoping to grow further even as it remains cautious of the disruptions expected in the next couple of months, ahead of the implementation of BS-VI and high cost of ownership, said a top executive of the company .Moreover it seems to be declining in growth despite at its growth which will adversely effect the economic slowdown to the country.During the year, the maker of the bestselling Baleno and Brezza, saw its sales volumes contract to 1.6 million units in the domestic market, from 1.8 million units a year ago, according to Bloomberg. This is only the second time that the local arm of the Japanese firm has seen sales drop in 12 years. Maruti’s sales rapidly 8.1 per cent to 1.1 million units in 2011, from 1.2 million a year ago. At most its seems to been slowdown despite of its sales.The automobile industry is performing poor.

As 2019 was almost not was good deal for the automobile industry especially Maruti Suzuki as it has not reached its target rather than it led to declining the sales. The cost of ownership is expected to remain same this year. This will led to hopping to be increase in sales and might stabilise in the months subsequent to BS-VI. Launch of petrol BS-VI variants of the Brezza and S-Cross will also bump up Maruti’s sales.

Meanwhile, Maruti is been competitive on CNG models to fill the growth that gets created after it discontinues production of diesel cars from April. It expects sales of CNG models to get a boost if the government cuts the goods and service tax that is GST rate on such vehicles.The of policy changes, increase in the cost of ownership which came on back of higher insurance premium, increase in road tax, and a liquidity crisis weighed on buyer sentiment. Confusion over the switch to BS-VI and talks of a possible reduction in GST rate on auto also prompted buyers to postpone purchases that leads to economic slowdown.