MARUTI Q3 2024-2025 Call Highlights: Rural Boom, EV Surge & Record Sales!

Maruti Suzuki India Ltd., India’s largest passenger car maker, in its Q3 earnings call discussed about rural markets outpacing urban growth at 15% versus 2.5% in Q3. The company announced a modest price increase of 30 basis points for Q4 FY25 while keeping discounts stable at INR31,000 per vehicle. The company mentioned that it is set to launch the e-VITARA EV with a 500 plus km range for export to 100 countries, though EV profitability lags behind ICE vehicles. Q3 exports hit 99,220 units, matching last year’s total, with strong demand from Africa, Latin America, Middle East, and ASEAN. Additionally, Maruti highlighted the popularity of the new Dzire sedan and its preparedness for Corporate Average Fuel Efficiency (CAFÉ) 3 norms with diverse technology offerings.

Maruti reported strong Q3 performance with net profit rising 16% year-on-year and revenue growing 15.5%, with EBITDA margins at 11.6%. The quarter saw record-breaking performance with total sales of 566,213 vehicles, marked by a revival in small car sales, up 29% year-over-year in December, highest-ever quarterly exports of 99,220 units, and domestic sales growth of 8.75% to 466,993 units. In significant corporate developments, the board approved the merger with Suzuki Motor Gujarat and reappointed Hisashi Takeuchi as MD and CEO for three years.

Continue Reading: Discover the Vital Insights from Maruti Suzuki India Ltd.’s Earnings Call!

Financial/Operational Metrics:

• Total Revenue: INR39,822 crore, up 15.5% YoY.
• Net Profit: INR3,727 crore, up 16.2% YoY.
• Diluted EPS: INR118.54, up 16.2% YoY.
• Total Expense: INR35,163 crore, up 15.6% YoY.
• Domestic Sales: 466,993, up 8.7% YoY.
• Exports: 99,220, up 38.2% YoY.

Outlook:

• EV Expansion: ‘e for me’ initiative to build charging infrastructure in top 100 cities.
• Manufacturing Growth: Greenfield plant at Kharkhoda contributing to depreciation increase.
• Export Growth Strategy: Increasing exports across 100 countries, leveraging “Make in India”.

  

Analyst Crossfire:

• Demand Environment & Growth Outlook, Price Hikes & Cost Pressures (Gunjan – Bank of America): Retail growth stood at 3.5% for the first nine months of FY25 and is expected to continue in Q4, but industry-wide growth projections for FY26 will be finalized in February. A minor price hike of 30 basis points was implemented in Q4 FY25 to offset inflation and cost pressures (Rahul Bharti – Executive Director).

 

• Rural vs. Urban Demand Trends & EV Export Potential (Jinesh Gandhi – Ambit Capital): Rural retail sales grew 15% in Q3, significantly outpacing urban growth of 2.5%, leading to an overall 8.3% retail growth. Maruti Suzuki aims to maximize EV export volumes but remains cautious about predicting demand across 100 countries (Rahul Bharti – Executive Director).

 

• Hatchback Market Trends, Export Growth & Regional Performance (Raghunandhan – Nuvama, Pramod Amthe – InCred Equities): The entry hatch segment saw a decline, mid-hatch was flat, while premium hatchbacks grew, signaling a shift in demand. Exports saw record growth, with strong performance across Africa, Latin America, and ASEAN, achieving quarterly volumes equal to a full year’s pre-COVID exports (Rahul Bharti – Executive Director).

 

• Toyota EV Partnership & New Dzire Demand Surge (Pramod Amthe – InCred Equities): The e-Vitara is a completely new platform with a longer wheelbase, differentiating it from the current Grand Vitara. The new Dzire is outperforming its predecessor, with 20,000 pending bookings and a significant increase in top-variant demand (Rahul Bharti – Executive Director).

 

• Inventory Levels & Q4 Dispatches, Rural vs. Urban Demand Trends (Pramod Kumar – UBS, Nitij Mangal – Jefferies): Dealer inventory was reduced to nine days by December-end, and retail sales are expected to continue the 3.5% growth trend in Q4. Rural demand growth is outpacing urban, with strong traction for smaller models like Alto. Rural car-buying trends are increasingly mirroring urban preferences (Rahul Bharti – Executive Director).

 

• EV Expansion & Battery Sourcing, Discounting Trends & Pricing (Kapil Singh – Nomura, Nitij Mangal – Jefferies): Maruti is targeting high-potential EV markets like Japan and Europe while initially importing batteries before assessing localization opportunities. Despite low inventories, discounts remain high. A recent price increase has been implemented, but discounting remains unpredictable due to multiple market factors (Rahul Bharti – Executive Director).

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