Car market leader Maruti Suzuki India is confident of posting a double-digit growth this fiscal despite high interest rates and customers staying away from buying new vehicles in rainy season affecting demand.
“We now find there is some pressure in the market as people are little apprehensive buying cars during the rainy period. Also interest rates are not coming down,” Maruti Suzuki India Executive Director RS Kalsi told PTI.
He, however, added ‘even then, we are committed for a double-digit growth in the year and we are working in that direction’. Both rural and urban markets are showing growth, he added. In June, the company sold 1,02,626 units as against 1,00,964 units in the same month last year, up 1.6 per cent.
The company has sold 3,41,329 units in the current fiscal till June, up 13.8 per cent from 2,99,894 units sold during the same period previous fiscal. For the 2014-15 financial year, the company had posted its highest ever annual sales at 12,92,415 units, up 11.9 per cent from 11,55,041 units in 2013-14.
Maruti Suzuki's domestic sales during the last fiscal stood at 11,70,702 units, up 11.1 per cent, from 10,53,689 units in 2013-14 fiscal. On challenges in the domestic market, Kalsi said: “Interest rates are not coming down, then there are monsoon worries. Then, thereare auspicious and inauspicious days for buying.”
When asked about expectations from upcoming S-Cross model, he said: “The S-Cross is a new category of vehicles and historically, we are known for creating new categories which never existed otherwise such as Dzire and Ertiga. I am sure we will create a new category.