Latest news with #MarutiSuzukiIndiaLtd
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Business Standard
21 hours ago
- Automotive
- Business Standard
Maruti Suzuki eyes 35% rail dispatch share by FY31: CEO Hisashi Takeuchi
Maruti Suzuki India Ltd (MSIL) on Thursday said it dispatched a record 518,157 vehicles via railways in 2024–25 (FY25), registering a 15.7 per cent year-on-year increase as the country's largest carmaker continued to scale up its use of low-emission transport. Rail dispatches accounted for 24.3 per cent of the company's total vehicle dispatches in FY25, up from 21.5 per cent in FY24. Maruti Suzuki's Managing Director and Chief Executive Officer Hisashi Takeuchi on Thursday announced the company aims to increase this share to 35 per cent by FY31, as part of its broader strategy to reduce carbon emissions and ease road congestion. 'Reducing carbon emissions is a top priority for us, both in our products and in our operations... By FY 2030–31, we plan to increase the share of vehicle dispatches through railways to 35 per cent,' he mentioned in a statement. The increased use of rail helped avoid over 180,000 tonnes of carbon dioxide equivalent (CO₂e) emissions and saved more than 63 million litres of fuel during FY25, the company noted. Rail transport is significantly more energy-efficient and environment-friendly compared to road transport. Since FY15, MSIL's cumulative vehicle dispatches through railways have grown nearly eight-fold, reaching around 2.4 million units. The company currently operates over 40 flexi-deck rakes, each capable of carrying approximately 300 vehicles per trip. At present, MSIL uses rail to move cars to over 20 hubs across India, which in turn cater to more than 600 cities. It also uses rail connectivity to move vehicles to the export ports of Mundra and Pipavav. Prime Minister Narendra Modi had in January 2024 inaugurated India's first in-plant railway siding for automobiles at MSIL's manufacturing facility in Gujarat. This infrastructure enables vehicles to be loaded directly from the factory onto trains, cutting down transit time and truck traffic. MSIL was the first automaker in India to obtain an Automobile Freight Train Operator (AFTO) licence in 2013, giving it greater flexibility and control over rail-based vehicle movement.
Mint
3 days ago
- Automotive
- Mint
Fronx, Jimny drive Maruti's export boom to Japan amid home market slowdown
Maruti Suzuki India Ltd's exports nearly doubled in May, as its sales to its parent Suzuki Motor Corp's home market Japan surged amid a slowdown in the country's car market and global trade uncertainties. India's largest car seller is targeting 400,000 passenger vehicle exports in the current financial year as it seeks to offset a slowdown in the domestic market. In FY25, Maruti Suzuki exported 332,585 passenger vehicles. Maruti's overseas sales in May rose 80%, its fastest pace in five months, to 31,719 passenger vehicles while domestic sales fell 5% to 148,858 units. 'Incremental growth was led by sales of Fronx and Jimny in the Japanese market. Japan has quickly become our second-largest export destination. We are also seeing strong momentum in Africa, Latin America and Southeast Asia which have been our strong markets," Rahul Bharti, senior executive officer of corporate affairs at Maruti Suzuki, said on Monday during a media briefing. Global markets drive momentum Exports of electric vehicles, which are set to start later this year, will further boost international sales, he added. Maruti Suzuki had previously said that it will export a majority of the 70,000 EVs it will produce in FY26. The surge in sales across the world, which also includes Chile, Saudi Arabia, and Mexico, is allowing Maruti to increase its global footprint despite the threat of US president Donald Trump's threat to double tariffs on imported steel and aluminum to 50%. Maruti's surge in passenger vehicle exports comes at a time when carmakers of the country are increasingly tapping the international markets. In FY25, passenger vehicle exports from India grew by 15% to 770,364 units. Domestic market under pressure The uptick in exports helped Maruti offset some impact of slowdown in sales in the domestic market, which was affected by border tensions with Pakistan in May. States affected by border tensions with Pakistan accounted for more than a fifth of Maruti's sales and the cities most affected constituted about 9% of its sales. 'Despite the impact of border tensions on consumers in border states, our growth remained in line with industry," Partho Banerjee, head of sales and marketing at Maruti Suzuki, said. The management highlighted the rising cost of small cars due to increasing regulations, making them unaffordable for a vast majority of consumers again. Earlier on 25 April, Maruti chairman R.C. Bhargava had said that growth in the car market will not pick up unless cars become affordable again. 'In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?" Bhargava had said during the post-earnings briefing. Meanwhile, Banerjee struck an optimistic note during the briefing, saying that the expectation of a good monsoon will boost rural growth, likely creating demand for cars. 'We have also calibrated our dispatches to dealers to ensure inventory doesn't pile up. Our inventory level was at 35 days," Banerjee said. While Maruti Suzuki's domestic sales struggled, Mahindra's wholesale dispatches during May rose 21% year-on-year to 52,431 units. Tata Motors sold 42,040 cars in May, a decline of 11%. As per industry estimates for the current financial year, the car market is expected to grow by just 1-2%. In FY25, the country's car market grew by 2% to 4.3 million units. Maruti Suzuki's share price has surged by 9% so far in 2025, as against a 0.7% increase in Nifty Auto index.
Time of India
20-05-2025
- Automotive
- Time of India
Maruti Suzuki partners Standard Chartered Bank for dealer financing solutions
Maruti Suzuki India Ltd on Tuesday said it has entered into an alliance with Standard Chartered Bank for inventory funding for its dealers. The company has signed a Memorandum of Understanding (MoU) with Standard Chartered for inventory funding which will empower over 4,000 Maruti Suzuki sales outlets across the country, with comprehensive inventory funding options for their working capital requirements, Maruti Suzuki India said in a statement. "This partnership takes us a step towards further empowering our dealer partners, while the company continues to expand its market presence, as always. This strategic alliance will leverage the combined strengths of MSIL and Standard Chartered to offer comprehensive working capital solutions to our dealer partners," Maruti Suzuki India Ltd (MSIL) Senior Executive Officer, Marketing & Sales, Partho Banerjee said. The financing solution will support dealerships in enhancing their ability to manage inventory efficiently and deliver exceptional service and customer satisfaction, he added. Standard Chartered Bank Co-Head, Coverage - India & South Asia, Sanjay Gurjar, said, "We truly believe our supply chain solutions will ensure that Maruti Suzuki dealers receive timely and efficient inventory funding, helping them to thrive in a competitive market space."
Time of India
20-05-2025
- Automotive
- Time of India
Maruti Suzuki partners Standard Chartered Bank for dealer financing solutions
Maruti Suzuki India Ltd on Tuesday said it has entered into an alliance with Standard Chartered Bank for inventory funding for its dealers. The company has signed a Memorandum of Understanding (MoU) with Standard Chartered for inventory funding which will empower over 4,000 Maruti Suzuki sales outlets across the country, with comprehensive inventory funding options for their working capital requirements, Maruti Suzuki India said in a statement. "This partnership takes us a step towards further empowering our dealer partners, while the company continues to expand its market presence, as always. This strategic alliance will leverage the combined strengths of MSIL and Standard Chartered to offer comprehensive working capital solutions to our dealer partners," Maruti Suzuki India Ltd (MSIL) Senior Executive Officer, Marketing & Sales, Partho Banerjee said. The financing solution will support dealerships in enhancing their ability to manage inventory efficiently and deliver exceptional service and customer satisfaction, he added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Envigado: Una inversión en AI podría darte un salario extra COinv Contáctanos Undo Standard Chartered Bank Co-Head, Coverage - India & South Asia, Sanjay Gurjar, said, "We truly believe our supply chain solutions will ensure that Maruti Suzuki dealers receive timely and efficient inventory funding, helping them to thrive in a competitive market space."
Mint
19-05-2025
- Automotive
- Mint
Maruti, Hero among automakers boosting earnings with exports as domestic demand remains on shaky ground
New Delhi: Exports of cars, scooters and motorcycles helped the country's top automakers post growth in their earnings in FY25 and beat domestic market blues caused by weak consumer sentiment. Maruti Suzuki India Ltd, the country's largest carmaker, and Hero MotoCorp Ltd, the biggest two-wheeler company, relied on export growth of 17% and 43%, respectively, to post a surge in profit and revenue during the year. Both companies recorded their slowest growth in domestic sales since FY22. Maruti Suzuki's sales grew 3% to 1.9 million vehicles, while Hero MotoCorp's sales increased by 5% to 5.9 million during the previous fiscal. TVS Motor Company Ltd, Mahindra & Mahindra Ltd and Eicher Motors Ltd were among the companies that recorded a surge in exports, although their domestic sales growth remained decent. TVS Motor's exports grew 18% to 1.2 million two-wheelers. Mahindra's overseas shipments grew 41% to 34,709 vehicles, while Eicher Motors' Royal Enfield exports grew by 30% to 100,136 motorcycles. Data from the Society of Indian Automobile Manufacturers indicated that domestic passenger vehicle sales grew 2% to 4.3 million, but exports surged by 15% to 770,364 units. Two-wheeler sales in the domestic market grew by 8% to 24.6 million units while exports grew by 19% to 5.2 million units. Analysts said the growing share of exports in the portfolio of auto companies is helping them in expanding margins, thus increasing profitability. Also Read | In charts: How second-hand car sales are picking up in India 'International sales are generally more profitable for Indian auto companies, and that's one of the reasons earnings have seen a boost in FY25," said Shridhar Kallani, an auto research analyst at Axis Securities. 'Exports typically fetch better margins because they offer higher selling prices, benefit from a favourable exchange rate, and involve lower discounting compared to the intensely competitive domestic market." Growth booster For Maruti Suzuki, exports are increasingly emerging as a driver of growth. 'We are growing better because exports have been very buoyant. In the coming year, exports are expected to grow by 20%. This is going to be the main driver for our production, sales, and profits," RC Bhargava, chairman of Maruti Suzuki, said during a post-results media briefing on 25 April. After a 3% growth in domestic car sales, the New Delhi-based company posted a 7.5% increase in profit to ₹14,500 crore in FY25. Encouraged by the strong growth in the overseas market, Maruti plans to export the majority of the 70,000 electric cars it will produce this fiscal. Hero MotoCorp reported a 5% rise in domestic sales of motorcycles and scooters, but exports grew 44%, albeit on a lower base, which helped the company post a 16% jump in profit to ₹4,610 crore. Company executives noted during the earnings call on 14 May that sales growth in the overseas market is expected to increase in the current financial year as it chalks an expansion plan. Also Read | Prediction: Maruti stock will beat the market. Here's why. Hero will enter the European and the UK market during the second half of this financial year. Its new electric Vida Z model to be launched in July will be sold in Europe and the UK. Hyundai Motor India, the South Korean subsidiary of auto giant Hyundai, is also relying on exports to help it beat the domestic market blues. It is targeting a 7-8% growth in exports in the current financial year. Hyundai India's sales in the domestic market declined by 3% during the year. 'We will grow in line with the industry within the country. The focus will be on exports growth to offset domestic market challenges," said Tarun Garg, chief operating officer at Hyundai Motor India. Positive outlook The major markets abroad for Indian auto companies include Southeast Asia, Latin America and Africa. Also Read | Hero MotoCorp needs 125cc to stay in the fast lane While macro challenges like weak Africa recovery and volatility in Sri Lanka and Bangladesh exist, most manufacturers expect FY26 to be strong, said Sanket Kelaskar, an institutional equity analyst at Ashika Group. 'There are structural scale-up targets of the companies. A ramp-up in earlier entry markets will help. Despite some near-term risks, the medium-term export outlook remains positive," Kelaskar said.
