Covid-19 crisis: Maruti to Toyota, auto sales collapse in May amid lockdown

After reporting near-zero sales in April, auto companies resumed despatches in May.
But the volumes were disappointing with sales of passenger vehicles declining 86 per cent year-on-year for leading players.
Auto firms in India count despatches to dealers as sales.
Maruti Suzuki, leader in the car market, sold 13,865 units domestically. This was a year-on-year decline of 88 per cent, and a little more than what it would produce in just three days before the country went into lockdown, thanks to Covid-19.
After the easing of lockdown in mid-May, auto companies were able to resume production in a phased manner, but the ramp-up was slow due to a broken supply chain, and lockdown-induced restrictions. Demand too remained weak and 25 per cent of the dealerships remain shut.
ALSO READ: Moody's cuts India's rating to 'Baa3', maintains negative outlook
R C Bhargava, chairman of Maruti Suzuki, said the volume ramp-up would be gradual, pointing out that the trend seen so far did not make him pessimistic. “So far, the improvement in demand, production, and sales looks quite reasonable, but it will be a gradual increase. It will not jump to the old levels anytime soon,” he said.
Bhargava expects volumes to reach the pre-Covid levels of 2019-20 in the second half of the year. Credit rating agency CRISIL too expects demand to pick up in the second half of FY21.
“A recovery in demand is expected only from the festival season in the third quarter of this fiscal – and largely for two-wheelers and tractors, which have a higher rural share,” it said. Other manufacturers also saw a steep drop in their sales volumes compared to last year.

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Volumes at Hyundai Motor, Mahindra & Mahindra, and Toyota Kirloskar dropped by 84, 81 and 86 per cent, respectively, during the month over the year-ago period, the companies said.
ALSO READ: Ashok Leyland domestic sales decline 90% at 1,277 units amid Covid-19
Veejay Nakra, chief executive (automotive division), M&M, said: “Our performance during May has been muted, due to the challenges the industry is facing.”
M&M has opened 70 per cent of its dealerships. Nakra said the company was seeing initial traction for its commercial vehicles and SUV brands such as the Bolero and Scorpio. Mahindra is hopeful that as the country unlocks, demand will go up in the coming months. Companies are still having problems in ramping up production to normal levels.
“It will take time to understand whether demand is ahead of supplies or it’s the other way round. In two months, we will have a reasonable idea what the year looks like,” said Bhargava. Maruti resumed operations at its Manesar and Gurugram facilities on May 12 and 18, respectively. Production at Suzuki Motor Gujarat resumed on May 25. The unit manufactures cars on contract for Maruti Suzuki.
Even though sales in May saw a huge fall, the S&P BSE auto index was an outperformer on Monday, rising 3.2 per cent against the 2.7 per cent gain in Sensex.
ALSO READ: Maruti Suzuki records 86% slump in total May sales at 18,539 units
“With the lockdown easing and gradual restoration of normalcy across the value chain, supply side constraints are being resolved gradually. The street is hopeful that demand too will catch up soon,” said Mahantesh Sabarad, head of retail research, SBICAP Securities.
Analysts say the road to recovery will be long and tough. “Despite the pent-up demand, which had started building up from mid-March, retail sales at all companies remained muted during the month,” said Mitul Shah, vice-president (research) at Reliance Securities. Buyers are not forthcoming in purchasing new vehicles amid poor economic conditions and uncertainties ahead. He expects sales to rebound in the second half. Hetal Gandhi, director, CRISIL Research, expects job loss and pay-cut fears dampening consumer sentiment. “Automobile sales are running out of steam as urban income sentiment wilts under the pandemic.”

Maruti Suzuki car sales drop 47% in March; ends FY20 with 16% decline

Maruti Suzuki India Ltd (MSIL), the country's largest passenger car manufacturer, on Wednesday reported 47 per cent year-on-year fall in its total sales during March to 83,792 units, as automakers in the country were forced to suspend operations amid a nationwide lockdown aimed to contain the spread of the coronavirus pandemic.
With this, the company ended FY 2019-20 with total sales of 1.563 million units, down 16.1 per cent from 1.862 million in the previous fiscal.The sales during March 2020 are not comparable with sales in March 2019 due to suspension of operations from March 22 in line with national policy, said the company.
"Maruti Suzuki remains committed to the safety and well-being of its employees, business partners and customers. The company will continue to support government at the Centre and state levels and follow all advisories in combating COVID-19," it said in a statement.
Data showed the company sold 76,976 vehicles last month, 47.4 per cent less than 145,000 in March last year. Export sales were down 55 per cent to 4,712 units from 10,463 in the year-ago period.
In the domestic market, light commercial vehicles suffered a blow of 71.5 per cent to 736 units in March 2020 compared to 2,582 units in March 2019.
The automobile sector has been experiencing a slump for several months with nearly all manufacturers reporting falling sales due to subdued consumer sentiment amid an economic slowdown.
Auto dealers now face a halt in customer walk-ins with rising coronavirus cases being detected in India and subsequent countrywide lockdown.

CCI looks into allegation against Maruti Suzuki over car insurance: Report

India's antitrust regulator is looking into allegations that MarutiSuzuki, the country's biggest car maker, pushes buyers to purchase insurance policies offered by the company, two sources with direct knowledge of the matter told Reuters.
The Competition Commission of India (CCI) in June last year received an anonymous complaint alleging insurance plans recommended by Maruti while selling cars resulted in customers paying more compared with other options in the market.

Based on the complaint, the CCI is assessing whether Maruti has engaged in so-called "tie-in arrangements", in which a car maker promotes preferred suppliers of complementary goods such as lubricants or insurance, the sources said.
Indian law says such practices are anti-competitive if they end up stifling competition and limiting consumer choices.
The Commission is looking into the complaint and "it will take a while", said one of the two sources, who declined to be named as the case details are private.
In response to Reuters questions, a Maruti spokesman said: "We are not aware of any such alleged complaint that is being investigated by CCI and therefore cannot comment on the same." The CCI did not respond to a request for comment.
The watchdog can still throw the complaint out if it finds no merit in the allegation, or order a deeper probe by its investigations arm.
Maruti is already the subject of another antitrust investigation in India. Last year, the CCI ordered its investigations unit to probe allegations the carmaker limits discounts its dealers can offer, a prohibited anti-competitive practice if it hurts consumers.
If the CCI decides to launch a wider probe into the new complaint, it could ask its investigation unit to wrap it into the ongoing case into Maruti's discounting practices, or order a fresh investigation, the second source said.
It was not clear over what period the anonymous complaint about insurance sales relates to.
Maruti, majority-owned by Japan's Suzuki Motor, is a market leader in India with a 50% share of the passenger vehicles market. It sold 1.73 million cars in the fiscal year ending March 2019 and has around 3,600 sales outlets.
The allegation of insurance tie-up arrangements against Maruti is similar to an earlier complaint against its competitor, South Korean carmaker Hyundai Motor Co, a third source aware of the complaint told Reuters.
In 2014, following a complaint from a car dealer, the CCI found initial merit in the allegations that Hyundai had entered into several tie-in arrangements, including to promote certain insurance companies, and ordered a wider investigation.
However, in its final order in 2017, the CCI said Hyundai's insurance arrangements were not anti-competitive.
"The most credible way for Maruti to show there is no tie-in would be by providing actual data on Maruti car buyers opting for insurers other than those recommended by it," said Rahul Rai, a New Delhi-based lawyer specializing in antitrust law.

Maruti Suzuki records 2.4% y-o-y rise in car sales during December 2019

With total sales of 133,296 passenger vehicles, the country's leading carmaker MarutiSuzuki India has recorded 2.4 per cent year-on-year rise in car sales in the domestic market during December, as higher demand for compact models such as New WagonR offset a slump in small cars.
In a regulatory filing, Maruti said it sold 124,375 vehicles in the domestic market in December as compared to 121,479 vehicles sold in the same month a year back.

After including exports and sales to other original equipment manufacturer (OEM), the firm clocked a 3.9 per cent rise in sales to 133,296 vehicles.
Its popular models such as Alto, which are categorised by the company as 'mini' cars, saw sales drop 13.6 per cent to 23,883 pieces.
This was more than offset by a near 28 pe cent rise in its 'Compact' category cars such as New WagonR, Swift, Celerio and Dzire to 65,673.
Mid-sized Ciaz saw a 62.3 per cent drop in sales to 1,786 while utility vehicles such as Gypsy and Ertiga posted a 17.7 per cent rise to 23,808.
During April-December, Maruti said its domestic sales were down near 17 per cent at 1.1 million units.
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Maruti Suzuki India sales down 1.9% in November at 150,630 units

The country's largest carmaker MarutiSuzuki India (MSI) on Sunday reported a 1.9 per cent decline in sales at 150,630 units in November.
The company had sold 153,539 units in November last year, MSI said in a statement. Domestic sales declined by 1.6 per cent at 143,686 units last month as against 1,46,018 units in November 2018, it added.

Sales of mini cars comprising Alto and WagonR stood at 26,306 units as compared to 29,954 units in the same month last year, down 12.2 per cent.
Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, rose 7.6 per cent at 78,013 units as against 72,533 cars in November last year.
Mid-sized sedan Ciaz sold 1,448 units as compared to 3,838 units earlier. Similarly, sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, declined by 1.3 per cent at 23,204 units as compared to 23,512 in the year-ago month, MSI said.
Exports in November were down by 7.7 per cent at 6,944 units as against 7,521 units in the corresponding month last year, the company said.

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Maruti Suzuki sales up 4.5% in October; key segments report growth

The country's largest carmaker Maruti Suzuki India (MSI) on Friday reported a 4.5 per cent increase in total sales at 1,53,435 units in October.
The company had sold 1,46,766 units in October last year, MSI said in a statement.
Domestic sales also grew 4.5 per cent to 1,44,277 units last month as against 1,38,100 units in October 2018, it added.
Sales of mini cars comprising Alto, WagonR and newly launched S-Presso stood at 28,537 units as compared to 32,835 units in the year-ago month, down 13.1 per cent.
Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, grew 15.9 per cent to 75,094 units as against 64,789 units in October last year.
Mid-sized sedan Ciaz sold 2,371 units as compared to 3,892 units in the same month last year, down 39.1 per cent.
Sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, were at at 23,108 units as compared to 20,764 units in the year-ago period, MSI said.
Exports in October were 5.7 per cent up at 9,158 units as against 8,666 units in the corresponding month last year, the company said.

Maruti Suzuki cuts production for eighth straight month in September

Reeling under a prolonged slowdown, Maruti Suzuki India (MSI) reduced its production by 17.48 per cent in September, making it the eighth straight month when the country's largest car maker lowered its output.
The company produced a total of 1,32,199 units in September as against 1,60,219 units in the year-ago month, Maruti Suzuki India (MSI) said in a regulatory filing.

Passenger vehicles' production last month stood at 1,30,264 units as against 1,57,659 units in September 2018, a decline of 17.37 per cent, it added.
Production of mini and compact segment cars, including Alto, New WagonR, Celerio, Ignis, Swift, Baleno and Dzire stood at 98,337 units as against 1,15,576 units in September last year, down 14.91 per cent.
Similarly, production of utility vehicles such as Vitara Brezza, Ertiga and S-Cross declined 17.05 per cent to 18,435 units as compared with 22,226 units a year ago.
Mid-sized sedan Ciaz saw its production reduced to 2,350 units in September from 4,739 units in the same month last year.
ALSO READ: Maruti to Tata, festive season fails to help passenger vehicle sales
Light commercial vehicle Super Carry's production was also trimmed to 1,935 units last month from 2,560 units in September 2018, the filing said.
In August, the automaker had cut its production by 33.99 per cent at 1,11,370 units.
Tata Motors also reported a 63 per cent drop in production of passenger vehicles in September at 6,976 units as compared to 18,855 units in the same period last year.
All the major automobile makers, including MSI, Hyundai, Mahindra & Mahindra, Tata Motors, Toyota and Honda, have reported double digit decline in domestic passenger vehicle sales in September as onset of the festive season failed to lift the ongoing slump in the auto industry.

Maruti to Tata, festive season fails to lift up passenger vehicle sales

Major automobile makers, including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, Toyota and Honda, on Tuesday reported double digit declines in domestic passenger vehicle sales in September as onset of the festive season failed to lift the ongoing slump in the auto industry.
The country's largest carmaker Maruti Suzuki India said its domestic sales declined by 26.7 per cent at 1,12,500 units last month as against 1,53,550 units in September 2018.
Sales of mini cars comprising Alto and WagonR stood at 20,085 units as compared to 34,971 units in the same month last year, down 42.6 per cent.
Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, fell 22.7 per cent at 57,179 units as against 74,011 cars in September last year.
The firm's mid-sized sedan Ciaz sold 1,715 units as compared to 6,246 units earlier.
ALSO READ: Tata Motors reports 48% sales decline in September at 36,376 units
Similarly, sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, declined marginally at 21,526 units as compared to 21,639 in the year-ago month, it added.
Hyundai Motor India said its domestic PV sales were down 14.8 per cent at 40,705 units as against 47,781 units in September last year.
Mahindra & Mahindra (M&M) reported 33 per cent decline in passenger vehicle sales at 14,333 units last month as compared to 21,411 units in the same month last year.
Reflecting on the sales performance, M&M Chief of Sales and Marketing, Automotive Division, Veejay Ram Nakra said, "We are positive that this festive season, with the onset of Navratra, will augur well for us and the automotive industry."
This, in addition to factors such as the good monsoon and recently announced positive government initiatives should help revive the industry in the short term, he added.
Toyota Kirloskar Motor's (TKM) domestic sales were at 10,203 units last month as compared to 12,512 units in September 2018, a decline of 18 per cent.
ALSO READ: Toyota Kirloskar sales down 17% in Sept at 10,911 units; exports up 25%
Commenting on the sales performance, TKM Deputy Managing Director N Raja said, "The consumer sentiment continued to be subdued in September which has reflected in the sales slowdown in the industry."
However, the company expects consumer demand will see the much-needed revival resulting in better retails due to Navratri and Diwali, Raja added.
Honda Cars India Ltd (HCIL) on Tuesday reported a 37.24 per cent decline in domestic sales at 9,301 units in September as against 14,820 units in the same month last year.
"While the market remained tough in September, the auto sales saw an up-tick from this August which is a positive sign," HCIL Senior Vice President and Director, Sales and Marketing Rajesh Goel said in a statement.
Tata Motors PV sales in the domestic market during the month stood at 8,097 units as against 18,429 units in the same month last year, a drop of 56 per cent.
Commenting on the sales performance, Tata Motors President, Passenger Vehicles Business Unit Mayank Pareek said the industry continued to decline in September.
"Towards the end of the month, there was an encouraging response in terms of customer footfalls," he added.

Maruti reports 33% drop in August sales at 1,06,413 units; exports down 11%

The country's largest carmaker Maruti Suzuki India on Sunday reported a 32.7 per cent decline in sales at 1,06,413 units in August.
The company had sold 1,58,189 units in August last year, Maruti Suzuki India (MSI) said in a statement.

Domestic sales declined by 34.3 per cent at 97,061 units last month as against 1,47,700 units in August 2018, it added.
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Sales of mini cars comprising Alto and WagonR stood at 10,123 units as compared to 35,895 units in the same month last year, down 71.8 per cent.
ALSO READ: Maruti Suzuki seeks better lending terms for dealers amid liquidity crunch
Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, fell 23.9 per cent at 54,274 units as against 71,364 cars in August last year.
Mid-sized sedan Ciaz sold 1,596 units as compared to 7,002 units earlier.
However, sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, rose 3.1 per cent at 18,522 units as compared to 17,971 in the year-ago month, MSI said.
Exports in August were down by 10.8 per cent at 9,352 units as against 10,489 units in the corresponding month last year, the company said.

Facing slowdown, and inventory glut, Maruti cuts 3,000 contract jobs

Maruti Suzuki India Ltd Chairman R C Bhargava said on Tuesday the company had not renewed the contracts of 3,000 temporary employees, as the automaker battled rising inventory amid a slowdown in demand.
Safety norms and higher taxes have "added substantially" to the cost of cars, affecting their affordability, Bhargava told shareholders at the company's annual general meeting.

With India's auto sales declining for the ninth straight month in July, more automotive manufacturers are laying off workers and temporarily halting production to keep costs in check, Reuters reported on Saturday.
ALSO READ: Slow down blues: Auto industries banking on new launches to revive demand
The company is on track to meet the country's new emission norms, adding that the company will move towards manufacturing compressed natural gas (CNG) and hybrid cars.
Maruti plans to increase CNG vehicles by 50% this year, Bhargava said.
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'Part of the business': Maruti says 3,000 temporary jobs cut in slowdown

Maruti Suzuki India hasn't renewed the employment contracts of 3,000 temporary workers because of a slump in the automobile industry, the carmaker's top executive has said.
"This is a part of the business, when demand soars, more contract workers are hired and reduced in case of low demand," said Maruti chairman R C Bhargava while speaking to TV news channels.

Bhargava was responding to a question on how the slump and production cuts have affected Maruti. "Around 3,000 temporary workers have lost jobs with Maruti Suzuki," he said, adding permanent workers were not impacted.
Reiterating that automobile sector creates job in the economy – from sales, service, insurance, licensing, financing, accessories, drivers, petrol pumps, transportation - he cautioned, "fewer automobiles (sales) will impact jobs on a larger scale."
These are not even visualised. The impact is much higher, he added.
When he was asked if the industry has hit the rock bottom in terms of sales in July, he said revival in the sense of positive growth will start from third or fourth quarter of this fiscal, partly because of the lower base effect.
"Hopeful to see strong revival in FY 2021. By then transition to BS VI will be over," he added.
Commenting on expectations from the upcoming festival season, he said due to the good monsoon, rural sales may pick up.
"If government makes an announcement and takes positive actions it should help improve the situation," he said, however, it was up to the government to decide on GST rate cut and take the corrective action.
"Personally we would like to see GST benefits linked to greener/cleaner cars...The government gave tax cut on EVs but hybrid should be given duty cut. There should be tax cut on CNG vehicles," he added.

'Cars don't sell': How a shadow banking crisis is hurting autos sector

Sudhir Gharpure and his sales team sat chatting at a big Maruti Suzuki dealership on the outskirts of Mumbai some two hours after its doors were opened on a recent Saturday morning - not a single customer was in sight.
"There used to be close to 15-20 bookings each day, but now we're down to 3-5 on good days," said Gharpure, the general manager at the dealership.

Gharpure's experience is not an isolated one. Across India dealerships are being pushed out of business and the Indian auto sector is going through its biggest slump in nearly two decades.
Passenger vehicle sales fell for eight straight months until June, and in May sales dropped 20.55% - the sharpest recorded fall in 18 years.
Preliminary data indicates passenger vehicle sales may have plunged as much as 30 percent in July. The slump in India, along with a simultaneous slide in Chinese auto sales, is a blow for automakers wrestling with higher costs driven by more stringent emission norms and a push to develop electric cars.
Unlike in China, where the plunge in cars sales has been caused largely by new emissions rules, India has seen a mix of factors that have combined to erode demand for automobiles.
Prime Minister Narendra Modi's 2016 ban on high-value bank notes, higher tax rates under a new goods and services tax regime, a boom of ride-sharing firms such as Uber and Ola, and a weak rural economy have all played a role.
But many dealers and automakers agree it is a deepening liquidity crunch among India's shadow banks that has been the biggest single factor in an auto sales collapse, which some fear may lead to more than a million job losses.
Non-banking finance companies (NBFCs), or shadow banks, have dramatically slashed lending following the collapse of one of the biggest, IL&FS, in late 2018.
IL&FS, or Infrastructure Leasing & Financial Services Ltd, was a behemoth in shadow banking and its defaults and unravelling, amid fraud allegations, have dried up funding for rivals and led to a surge in their borrowing costs.
Non-bank or shadow banking firms generate credit outside traditional lenders, by means such as collective investment vehicles, broker-dealers or funds that invest in bonds and money markets.
In India, NBFCs have in recent years helped fund nearly 55-60% of commercial vehicles both new and used, 30% of passenger cars and nearly 65% of the two-wheelers in the country, according to rating agency ICRA.
To aggravate matters, the stress in the autos market has also prompted banks to begin trimming their exposure to the sector.
"The car doesn't sell, it's the finance that sells," said R.
Vijayaraghavan, a senior marketing consultant at the same Mumbai dealership. "Today the finance is not selling, so the cars are not selling."
PROBLEMS AMPLIFIED
Some 286 dealerships have shut down in the last 18 months across India as rising costs for inventory management have made businesses unviable, according to the Federation of Automobile Dealers Association (FADA), a lobby group of auto dealers.
"The slowdown in the (NBFC) sector has dragged down vehicle sales growth," said A.M. Karthik, financial sector head at ICRA.
"Now the auto slowdown is becoming more visible as the liquidity squeeze continues."
Automakers including Maruti Suzuki, Tata Motors , and Mahindra & Mahindra are feeling the heat and have either cut production or temporarily closed plants to correct mounting stocks.
According to FADA data, passenger vehicle inventories now stand at 50-60 days up from around 45 days earlier, while those of two-wheelers are even higher at 80-90 days. For commercial vehicles, inventory levels range between 45 and 50 days.
"We are asking dealers to maintain an inventory of 21 days, which is almost half of the current levels," said Ashish Kale, president of FADA.
At least four dealers from different brands said, however, there was little scope to reduce inventories as automakers were pushing them to buy stock despite there being no demand even with heavy discounting and other sops on offer.
While 70-75% of car sales were previously financed in-house by NBFC or bank agents sitting at a dealership, that has fallen to about 50%, say dealers, as buyers struggle to qualify under more stringent lending norms put in place by lenders that are under pressure to shore up their books.
Moreover, as many NBFCs typically lent to less creditworthy clients, banks are reticent to rush in to fill the void, as they themselves struggle to cope with an existing pile of about $150 billion in bad loans.
"The banking sector is certainly one of the factors that has affected the growth of the industry," said R.C. Bhargava, chair of Maruti Suzuki, noting interest rates for car buyers have gone up in the last 12 months despite the central bank cutting rates.
EARLY RECOVERY UNLIKELY
With the autos sector employing more than 35 million people directly and indirectly, and contributing more than 7% to India's GDP and accounting for 49% of its manufacturing GDP, the fallout from the autos slump is huge and presents a big challenge to Prime Minister Narendra Modi's government as it begins its second term.
The entire supply chain, from vehicle manufacturers to component makers, are bleeding amid the slump.
"I've been making my payments for the last 30 years and the lenders know me," said Adarsh Gupta, the director of finance at Autolite (India), a component manufacturing firm. "But even a two-day delay has people crying that I will default.
"I too want to pay, but because of the fall in cashflows I'm facing short-term issues and because of that it's difficult to get more financing. This is the vicious cycle we are in." Still, automakers are hopeful of a recovery in the months ahead, helped by the September-December festive season that traditionally sees a surge in consumer spending.
"One can only wish that things improve sooner rather than later. With festive demand starting to seep through, we should start seeing a gradual improvement in sales," said P.B. Balaji, group CFO at Tata Motors.
Analysts are more sceptical though, and say without vehicle financing becoming cheaper and easier the chances for that are low. With no silver lining in sight, analysts fear bad debts could mount in the auto sector, forcing banks to further reduce their exposure.
"We see market prices and sales coming down so there may be issues," said a top official at the Indian Banks' Association.
"We could see a spillover in terms of bad loans for the overall sector, but we are going to wait and watch." Dealers said they were hopeful of tiding over the current downturn as the broader growth story for India remains intact, but there could be a lot more pain before a recovery kicks in.
"The future is going to be multi-brand car showrooms," said marketing consultant Vijayaraghavan. "That is the only way for dealerships to survive going forward as overhead costs need to be shared."

Maruti Suzuki continues slide, sales down 33.5% to 1,09,264 units in July

The country's largest car maker Maruti Suzuki India (MSI) on Thursday reported 33.5 per cent decline in total sales at 1,09,264 units in July.
The company had sold 1,64,369 in July last year, Maruti MSI said in a statement.

Domestic sales declined by 36.3 per cent at 98,210 units last month as against 1,54,150 units in the year ago month, it added.
Sales of mini cars comprising Alto and WagonR were at 11,577 units as compared to 37,710 units in July last year, down 69.3 per cent.
Sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, were down 22.7 per cent at 57,512 units as against 74,373 units in July last year, the company said.
Mid-sized sedan Ciaz sold 2,397 units as compared to 48 units in the same month a year ago.
Utility vehicles, including Vitara Brezza, S-Cross and Ertiga were down 38.1 per cent at 15,178 units as compared to 24,505 in the year-ago month, MSI said.
Exports in July were down by 9.4 per cent at 9,258 units as against 10,219 units in the corresponding month last year, the company said.

Working overtime to meet BS-VI norm ahead of April 2020 deadline: Maruti

With the Supreme Court fixing April 1, 2020, deadline for the sale of only BS-VI-compliant vehicles, Maruti Suzuki India (MSI) is working 'overtime' to make over 40 variants of powertrains across more than 15 models meet the stricter emission norms, according to a senior company official.
The company has also reinforced manpower in its engineering and research and development in order to be able to meet the Bharat Stage (BS) VI norms for its fleet ahead of schedule.

"We are working very hard, we are working overtime. No other manufacturer has this kind of work which they have to do. We have the largest number of model portfolio and the largest number of powertrains," MSI Senior Executive Director C V Raman told PTI.
He was responding to a query on how the Supreme Court's order last month to stop selling BS-IV vehicle across the country from April 1, 2020, has altered MSI's preparation for BS-VI emission norms.
Earlier in 2016, the Centre had announced that India would skip the BS-V norms altogether and adopt BS-VI norms. It had stated that from April 1, 2020, only vehicles complying with the latest emission norms would be manufactured while giving three months to automobile firms for the transition to start selling BS-VI vehicles.
However, citing air pollution issues, the apex court said no BS-IV vehicles would be allowed to be sold across the country from April 1, 2020.
Elaborating on the scale of work MSI is undertaking in order to meet the new stricter emission norm, Raman said, "We have more than 15 models and more than 40 variants of powertrains, which is a combination of engine and transmission. So, we will have to ensure that we have to do all of these ahead of schedule."
When asked if MSI would be able to make all of its existing models meet BS-VI norm, he said, "We are working on it definitely and we will ensure that customers get BS-VI. We will try to do ahead of time."

On manpower reinforcement for the new emission norm, Raman said, "Yes, we have been continuously upgrading our people at our facilities both at Rohtak and at Gurgaon."
He said the company had to deploy more people not to just meet the BS-VI norms but also other safety regulations which had come into effect this year.
While he did not specify the number of people deployed for the project, Raman said, "It is a substantial number, specially on the powertrain (for activities such as) engine design, calibration and testing."
Moreover, additional manpower has been utilised in areas such as transmission design, quality assurance and body changes, he added.
Stating that BS-VI works are simultaneously happening at the company's R&D centre at Rohtak and Gurgaon facility along with Suzuki in Japan, Raman said the company is also working with suppliers such as Dentsu, Bosch and others.
"There is no choice for us, we have to do it. For us, it is do or die," he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)