Auto sector update: Maruti Suzuki shares rise as sales cross 1.81 lakh units

Shares of Maruti Suzuki India surged over 2 per cent on Monday, driven by the company's announcement of a 10 per cent year-on-year (YoY) increase in auto sales for November 2024. The Maruti Suzuki share price reached Rs 11,314 on the National Stock Exchange (NSE) in early trading, reflecting a 2.17 per cent rise. On the Bombay Stock Exchange (BSE), the stock gained 2.21 per cent, trading at Rs 11,317.50. The automaker's market capitalization stood at Rs 3,55,895.85 crore.

Maruti Suzuki India reported total sales of 1,81,531 units in November 2024, compared to 1,64,439 units in the same month last year. Domestic passenger vehicle sales rose 5 per cent YoY to 1,41,312 units from 1,34,158 units in November 2023.

However, not all segments saw uniform growth. Sales of mini cars, including S-Presso and Alto, slightly declined to 9,750 units from 9,959 units in the previous year. Compact car sales, comprising models like Dzire, Baleno, Swift, and WagonR, fell 5.1 per cent to 61,373 units from 64,679 units in November 2023.

In contrast, utility vehicle sales, featuring models such as Brezza, Grand Vitara, and XL6, climbed to 59,003 units, marking a significant increase from 49,016 units in November 2023. The Eeco van recorded sales of 10,589 units, up from 10,226 units, while the Super Carry light commercial vehicle sales rose to 2,926 units from 2,509 units.

Despite the strong sales performance, Maruti Suzuki had reported a 17.4 per cent decline in standalone profit after tax (PAT) for the quarter ending September 2023. The PAT stood at Rs 3,069.2 crore, down from Rs 3,716.5 crore in the corresponding quarter of the previous fiscal year. Revenue from operations increased marginally by 0.37 per cent to Rs 37,202.8 crore, compared to Rs 37,062.1 crore in the same period last year.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) dropped 7.7 per cent to Rs 4,417 crore, compared to Rs 4,784 crore in the September quarter of FY24.

The rise in the Maruti Suzuki share price aligns with a broader trend of positive momentum in auto stocks, driven by strong sales figures and optimism in the sector. Analysts believe the company’s consistent performance in utility vehicle and light commercial segments, along with its expansive portfolio, is sustaining investor confidence.