Maruti Suzuki - Leader in Passenger Vehicles

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During the Bajaj Auto conference call, an intriguing discussion emerged around the economics of running CNG-powered vehicles versus electric vehicles (EVs), particularly within the context of their three-wheeler (3W) segment. Model management highlighted a compelling point: the cost per kilometer of operating a CNG vehicle is lower than that of an EV. This assertion, coupled with the ease of access and familiarity associated with refueling CNG vehicles compared to charging EVs, sparked a thought-provoking inquiry: could these factors similarly influence the PV market?

Considering Maruti’s strategic approach, which emphasizes a comprehensive focus on various fuel types rather than solely prioritizing EVs, appears accurate in light of these discussions. By maintaining a diversified portfolio across different fuel technologies.
Thoughts?

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Mariti 800 coming back with a new Avatar 38 KMPL, 5 seater under Rs 5 lakh. Meant for 1st time buyer as entry car.

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Maruti Suzuki -

Q4 concall and results highlights -

Revenues - 38471 vs 32214 cr
EBITDA - 5221 vs 3894 cr ( margins @ 14 vs 12 pc )
Other income - 1261 vs 850 cr
PAT - 3952 vs 2688 cr

Sales volumes - 5.84 lakh vs 5.14 lakh cars ( up 13.5 pc ). Export sales @ 78k vs 64k cars

EBITDA margins expansion led by - increased capacity utilisation, lower sales promotion expenses

Full yr sales volumes @ 21.35 vs 19.66 lakh cars ( up 9 pc )

Utility vehicles sales volumes grew by a whopping 75 pc @ 6.42 lakh cars in FY 24

Segments that de-grew include - Mini ( down 39 pc ) and compact ( down 4 pc )

Indian car mkt grew 8 pc YoY to cross 40 lakh car sales. India is now the third largest car market in the world

The shift in consumer preference towards SUVs continued in FY 24

The share of Hatchback segment is down to 27 pc, down from a high of 49 pc in FY 19

Share of CNG vehicles continues to rise. Now at 15 pc of total PV market !!!

EV and Hybrid cars currently at 2 pc mkt share each

Maruti Suzuki’s exports for FY 24 stood at 2.8 lakh cars. Company is also the largest car exporter from India. Exports grew by 10 pc YoY

Grand Vitaraa became the fastest car to clock 1 lakh car sales in the Industry

Company increased its solar power generation capacity from 26 MW to 43 MW in FY 24. Aim to take it to 48 MW in FY 25

Aim to cross 40 lakh cars / yr production target by 2030 ( almost double of current capacity )

CNG car sales for the company were around 4.5 lakh cars in FY24. Next yr, they are targeting a sales of 6 lakh CNG cars. Bulk of CNG sales come from Ertiga

First time buyers in FY 24 @ 43 pc of sales. Rest were replacement and additional car buyers

Committed to the Hybrid technology. Initially focussed on bigger cars like - Grand Vitara, Invicto. If volumes in these categories sustain, will invest in R&D to roll out Hybrid technologies in compact cars as well

Company did face supply challenges in the CNG segment in Q4 ( due some component shortage ) because of which some sales have been deferred. Current bookings / backlog of CNG deliveries stand at over 1 lakh vehicles - mostly Ertiga. Total - company level bookings currently stand at 2 lakh vehicles

Royalty payments to SUZUKI stand @ 3.5 pc of sales

Design to Launch timelines for new vehicles remain at 4 yrs

Disc: hold a small tracking position, biased, not SEBI registered

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