Semiconductor Shortage Hits Maruti Suzuki Sales, But Company Remains Leader

Maruti Suzuki India Limited (MSIL) reported a 10.32% increase in its total sales in May 2023, at 178,083 units, compared to 161,413 units in the same month last year. The company’s domestic sales grew by 10.7% to 168,026 units, while exports increased by 1.6% to 10,057 units.

The growth in MSIL’s sales was led by its compact and mid-size cars, such as the Baleno, Swift, Dzire, and Ertiga. These models together contributed to 138,810 units of sales in May 2023, up from 126,849 units in the same month last year.

However, the company’s mini car segment, which includes the Alto and WagonR, witnessed a decline in sales. The segment’s sales fell by 17.6% to 29,276 units in May 2023, from 36,064 units in the same month last year.

MSIL’s sales were also impacted by the ongoing semiconductor shortage. The company said that it expects the shortage to continue in the coming months, which could impact its production and sales.

Despite the challenges, MSIL remains the leader in the Indian passenger car market. The company has a market share of over 50%, and it is expected to continue its dominance in the coming years.

Experts View

Experts say that the growth in MSIL’s sales is a positive sign for the Indian auto industry. They believe that the company’s focus on compact and mid-size cars is paying off, as these segments are witnessing strong demand.

However, experts also warn that the semiconductor shortage could continue to impact MSIL’s production and sales in the coming months. They say that the company needs to take steps to mitigate the impact of the shortage, such as increasing its inventory and sourcing components from alternate suppliers.

Overall, experts are positive about the outlook for MSIL. They believe that the company is well-positioned to continue its growth in the coming years.