Maruti Suzuki , India's leading automobile manufacturer, has reported 350,000 bookings across its product range, with 250,000 bookings coming from cars in the 18% GST category. This surge in bookings follows a GST rate reduction for small cars from 28% to 18%, introduced before the festive season.

Small Car Segment Dominance

The significant contribution of the small car segment to Maruti Suzuki's sales underscores the ongoing importance of this category in the Indian automotive market. Chairman RC Bhargava stated that customer inquiries remain strong and the company expects double-digit growth in the small car segment. Maruti Suzuki recorded 30% retail sales growth in October, primarily driven by small cars.

GST Impact and Sales Distribution

Vehicles in the 18% GST bracket now constitute 69% of total sales, reflecting the positive impact of the tax reduction. Senior Executive Officer Partho Banerjee noted that 65% of bookings come from outside the top 100 cities, including rural areas, indicating a widespread demand for Maruti Suzuki's vehicles.

New Model Performance

The company's new SUV, Victoris, has received 33,000 bookings since launch, with 30% for CNG variants. The Victoris is priced between ₹10.50 lakh and ₹19.98 lakh and offers three powertrain options including mild-hybrid, strong-hybrid, and CNG technologies.

Strong Demand and Production Challenges

The substantial number of bookings highlights the robust demand for Maruti Suzuki's vehicles. This significant backlog suggests that the company's production may be facing challenges in keeping pace with consumer interest.

Industry Outlook

While specific growth forecasts were not provided, the strong booking numbers and sales growth indicate a positive outlook for Maruti Suzuki and potentially for the broader automotive industry in India.

Conclusion

Maruti Suzuki's report of 350,000 bookings, the dominance of small cars in its sales, and the success of new models like the Victoris highlight the company's strong market position. The impact of GST reductions and the widespread demand across various regions of India further underscore the company's current performance and future prospects in the Indian automotive market.

Maruti Suzuki India Limited , India's leading automobile manufacturer, has released its financial results for the second quarter of the fiscal year 2025-26, showcasing a mixed performance with revenue growth exceeding expectations but profit falling short of estimates.

Revenue Growth

For the quarter ended September 30, 2025, Maruti Suzuki reported total revenue of ₹421.00 billion, marking a significant increase from ₹372.00 billion in the same quarter of the previous year. This figure surpassed analysts' estimates of ₹396.40 billion, indicating strong sales performance despite challenging market conditions.

Profit Performance

Despite the increase in revenue, the company's net profit fell short of expectations. For Q2 FY2026, Maruti Suzuki's net profit stood at ₹33.00 billion, up from ₹30.70 billion in the corresponding quarter last year. However, this figure was below the estimated ₹36.18 billion projected by analysts.

Financial Performance Overview

Here's a summary of Maruti Suzuki's key financial metrics for Q2 FY2026:

EBITDA Performance

Maruti Suzuki's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased marginally to ₹44.34 billion from ₹44.17 billion year-over-year, exceeding estimates of ₹41.90 billion. However, the EBITDA margin declined to 10.53% from 11.90% in the previous year, remaining close to the estimated 10.60%.

Looking Ahead

While Maruti Suzuki has shown strong revenue growth and exceeded EBITDA expectations, the lower-than-expected profit and declining EBITDA margin may prompt the company to explore strategies for cost optimization and efficiency improvements in the coming quarters. The automotive sector continues to face challenges, including supply chain disruptions and evolving consumer preferences, which may influence Maruti Suzuki's performance in the near future.

Investors and analysts will likely keep a close eye on how the company addresses these challenges and maintains its market leadership in the competitive Indian automotive market.