Maruti's small cars revving again

Mighty mite Maruti Suzuki's domestic small car sales revived in December, leading to first monthly year-on-year growth in FY25

- Manish Joshi

Maruti Suzuki India Ltd's sales volume update for December sprung a positive surprise on small, entry-level cars, which saw 29% year-on-year growth to 62,324 vehicles. This is much higher than the 21% year-on-year growth in the company's utility vehicle (UV) sales even though the base for both segments was more or less the same.

In the context of the ongoing trend towards UVs and other premium vehicles, the superior growth in small cars was entirely unexpected. If the trend continues, Maruti's stock could regain some of its lost momentum.

It's important to note, however, that December was the first month in FY25 in which small cars posted year-on-year sales growth. The segment is hugely important for the company, accounting for 50% of its total passenger vehicle sales in India in the first nine months FY25 (April-December).