Maruti Suzuki’s growth (17%) in India outpaced Suzuki’s performance (7.2%) in Japan; India emerged as major revenue generator
Maruti Suzuki has outpaced its parent group Suzuki’s growth in the firs5t half of current financial year. In this period, the Indo-Japanese automaker posted 17% growth that translates to around 826,000 units compared to Suzuki’s 7.2% growth in the Japanese market. Clearly, India has become a major revenue generator for the automaker.
Interestingly, not only Maruti Suzuki, but other auto majors too have seen similar trend. If we talk about India’s second biggest car brand Hyundai, the South Korean company contributed 15% of the company’s total global sales between January and October this year. In 2015, India contributed 13.5% of Hyundai’s total global sales. Another Japanese auto major Honda too has seen similar success in the country market.
In the first half of current financial year, India contributed 32% of total global sales for Honda, while in the FY16 it was 25%. Clearly, India is becoming one of the largest revenue generators for several auto majors. This is a major reason behind the automakers focusing on bringing more new models here.
Speaking about Maruti Suzuki’s sales in India, in the second quarter of current financial year, the automaker’s stake in total sales increased to 54.4%, while the share was 49.5% at the end of last financial year. Emphasising on premium products keeping pace with the demands of the domestic customers played key role in the significant growth for all these brands and in future too the growth pace is expected to continue.
Also read: Upcoming Hyundai Cars in India in 2017, 2018
While this was about the car market, in the two-wheeler market too India is playing major role for Honda’s overall global sales HMSI is not only driving the Indian industry momentum, but leading the Japanese brand’s global business as well. Despite its business spread across 120 countries across the world, Honda’s number one market is India and the company is expecting more growth in coming years.