Maruti shifts focus to minis on strong sales

India’s largest carmaker, Maruti Suzuki India Ltd, is prioritizing the production of small cars like the Alto and S-Presso, even if it means cutting output of bigger models, as it believes there is still growth potential for them in the world’s third-largest automobile market.

- Ayaan Kartik

The New Delhi-based carmaker said on Thursday that mini cars such as the Alto and S-Presso are showing strong growth, with sales nearly doubling in December. The firm is ramping up production of the vehicles to meet retail bookings, buoyed by recent goods and services tax (GST) cuts.

Mini car dispatches to dealers in December rose by 92% year-on-year to 14,225, lifting Maruti’s domestic sales by 36% to 192,115 units. Its larger utility vehicle portfolio grew 33% on-year, reaching 73,818.

The production of mini cars is being slowly ramped up, which is reflected in the December sales numbers, following wholesale data for October and November that showed a tepid performance, according to a top executive.