Chairman of Maruti Suzuki India Ltd. predicts demand after elections; net up 48%
The biggest automaker in the nation, Maruti Suzuki India Ltd (MSIL), announced a 48% rise in net profit for the March quarter of FY24 (Q4FY24) to Rs 3,878 crore on Friday. The gain was attributed to strong sales volume and favorable commodity prices.
In the same time last year, the car giant declared a net profit of Rs 2,624 crore. In Q4FY24, MSIL reported sales of Rs 38,235 crore, up from Rs 32,048 crore in the same quarter of the previous fiscal year. MSIL also announced the biggest dividend the business has ever paid, Rs 125 per share.
The manufacturer of the Baleno, Brezza, and Grand Vitara models sold 584,031 units in the March quarter, a 13% year-over-year increase, helped by the growing demand for SUVs. In the Financial Year 2024, the firm achieved a first: it exceeded the yearly total sales milestone of 2 million (20 lakh) units. MSIL’s net profit increased to Rs 13,209 crore for the whole FY24 from Rs 8,049 crore for the FY23, a 64% increase. Compared to Rs 117,523 crore in FY23, total income increased by 20% to Rs 140,933 crore in the just ended fiscal year.
According to RC Bhargava, Chairman of MSIL, the auto sector will keep growing. He thinks that the economy would reach extraordinary heights under the next new administration, which takes office in less than two months. Even though many in the sector have predicted a low single-digit increase for the current fiscal year, Bhargava said, “The new government will have a very good base to go forward.”
As to Bhargawa’s statement, MSIL is collaborating closely with Suzuki Japan to meet the goal of selling four million cars and exporting between seventy-five thousand and one million units by the end of FY30–31. He said that MSIL’s Kharkoda expansion plan is moving forward without any problems, with the first production line scheduled to begin before the end of the current fiscal year. After that, they should be able to add one more production line about every 12 months.
The automaker said that Suzuki Japan is developing cost-effective hybrid options for small automobiles after testing out the technology. In the future, Suzuki is also thinking about using plug-in hybrid technology.
Speaking on the decline in EV sales worldwide, Bhargava said that EVs are essential for achieving carbon neutrality targets.
“Every automaker is aware that they must produce electric vehicles. Not only the manufacturers can determine how quickly the EV industry will expand. Bhargava said, “It relies on the infrastructure, the clients, and the government regulations as well. MSIL plans to introduce its first electric vehicle in FY25.
