Maruti sees 7 per cent surge in bookings in December

Source: The Hitavada      Date: 24 Dec 2016 09:23:25


Dec 23,


MARUTI Suzuki, India’s largest car maker, Friday said it saw a 7 per cent surge in car bookings in December after a 20 per cent decline in the preceding month of November. “The numbers that we have show that demonetisation did lead to dip in bookings in November. Bookings as well as True Value sales...If we take October-November period then retail sales were still 6-7 per cent higher than last year. But bookings in November certainly fell 20 per cent as compared to last year,” Maruti Suzuki India (MSI) Chairman, R C Bhargava told reporters.

Things had since then improved and December had seen a 7 per cent growth in bookings when compared to the year-ago period, he said.

“So it indicates that immediately after demonetisation took place (on November 8), certain amount of uncertainty and concern was there among people as what it means, but the trend has changed and from minus 20 per cent last month, the company has seen bookings grow 7 per cent in December,” Bhargava added.

On dip in sales from Maruti True Value outlets, Bhargava cited higher interest rates for used cars and shortage of cash as prime reasons.
“Trend is reversing but it is still in the negative territory,” he added.

When asked if the company would still stick to its earlier stated double-digit growth guidance for the current fiscal, Bhargava said:

“Till November, we were growing in double digits. As I said I am not making a prediction for the next three months but what I can say safely is that in the worst case scenario, I can see that even if things go bad for some reasons we will still be not very different from 10 per cent.”