Compact segment accounted for almost half of MSI's total sales in 2018-19

Maruti Suzuki, India's largest carmaker said on Monday that compact models, including premium hatchbacks such as Baleno, Celerio, Swift, sedan Dzire have become the primary growth driver of the company's sales. The compact segment accounted for 49.7 per cent, almost half of its total domestic sales in 2018-19 as compared to 45.3 per cent in 2017-18.

According to an investor presentation by MSI, the compact segment, sold 8,71,864 units in 2018-19 as against 7,48,475 units in 2017-18, up 16.5 per cent. MSI had sold a total of 17,53,700 units, including light commercial vehicle Super Carry, in the financial year ended March 2019 as against 16,53,500 units a year ago, a growth of 6.1 per cent.

The mini segment comprising Alto and the old WagonR -- which was once the bread and butter for the company -- accounted for 21 per cent of its total domestic sales at 3,68,990 units in 2018-19. In 2017-18, the segment contributed 25.8 per cent to the company's total domestic sales with 4,27,183 units. The mini segment sales dipped by 13.6 per cent in 2018-19 as compared to the previous year despite the fact that Alto retained the tag as the best-selling model in 2018-19 with 2,59,401 units as compared to 2,58,539 units in the previous year.

"The decline in the mini segment sales was also partly due to the new WagonR being classified in the compact segment, while the old WagonR was in the mini segment," a company official said. The introduction of new models like Baleno in 2015 and the new versions of Swift and Dzire have helped in the compact segment becoming the primary growth driver of the company's sales, the official added. In the financial year ended March 31, compact sedan Dzire sold 2,53,859 units as against 2,40,124 units a year ago, up 5.71 per cent, while Swift clocked 2,23,924 units as against 1,75,928 units, a growth of 27.28 per cent.

Premium hatchback Baleno sold 2,12,330 units in 2018-19 as against 1,90,480 units in 2017-18, a growth of 11.47 per cent. Utility vehicles (UV) comprising Gypsy, Ertiga, Vitara Brezza, S-Cross were the third-biggest contributor accounting for 15.1 per cent of MSI's total domestic sales in 2018-19 with 2,64,197 units.

In 2017-18, the UV segment accounted for 15.3 per cent of the company's total domestic sales with 2,53,759 units. The company currently sells a range of diesel vehicles. Around 23 per cent of all units sold by the company in the domestic market currently are diesel cars.

Some of the company's models like Vitara Brezza and S-Cross currently come with a diesel engine option only. Others like Swift, Baleno, Dzire, Ciaz and Ertiga have petrol versions in addition to the diesel trims. MSI also decided to pull the plug on the diesel version of its light commercial vehicle Super Carry from next year. It would be only available in petrol/CNG version going ahead. It sold a total of 4.63 lakh diesel units last fiscal.

MSI reported a 4.6 per cent decline in net profit to Rs 1,795.6 crore for the fourth quarter of the 2018-19. For the entire 2018-19, MSI posted a net profit of Rs 7,500.6 crore, down 2.9 per cent from the previous financial year.