The EBITDA per vehicle at INR 86,273 was at a record high. Sequentially, the company improved margin by nearly 41 basis points, surpassing market expectations by approximately 100 basis points.
A sustained decline in raw material costs caused the raw material-to-sales ratio to shrink 263 basis points to 70% in the first quarter of FY25. In addition, the company’s average selling price (ASP) rose 5% year-on-year to INR 6.8 lakh per unit, driven by an improved product mix with a higher share of higher ASP CNG vehicles. Sales in lower CNG penetration markets such as Karnataka, Kerala, Rajasthan, Madhya Pradesh, and Bihar showed strong traction.
The share of CNG vehicles in total domestic volume increased 600 basis points sequentially to 33% in the June quarter. Given the additional one lakh units of installed capacity at the Manesar facility, the CNG mix is expected to sustain. The company has guided for a sales volume of 6,00,000 CNG units for the current fiscal year, 33% higher compared with 4,50,000 units in the previous year.
In the coming quarters, margin may show pressure pertaining to rising discounts at the industry level due to higher inventory. The industry-wide inventory has reached approximately 6-6.5 lakh units, equivalent to 45 days of sales. For Maruti, though CNG models attracted lesser discount due to higher demand, average discounts per vehicle increased to INR 21,700 in the June quarter compared with INR 14,500 a year ago. This higher discount reflects rising
The company’s export growth has remained stable, with gradual expansion into the Middle East and Latin American markets. In the first quarter of FY25, exports grew 11% year-on-year to 70,560 units, contributing 13.5% to the total volume. The company expects export sales of over 3,00,000 units for the full fiscal year compared with 2,83,000 units the previous year. With low single-digit growth in the domestic market, the full-year volume growth is expected to be 5-6% for FY25 and 7-8% for FY26.
Maruti’s market share remained stable at 41.6% in the first quarter. It showed traction in the multi-utility vehicle (MUV) segment where the company’s market share improved 500 basis points to 61%. Notably, the volume of the Ertiga nearly doubled over the past year. The MUV segment makes up 14% of the total industry volume.
The stock trades at 26 times one-year forward earnings, which is in line with its long-term average valuation.
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