Maruti reports earnings, profit up 13%

Earnings season is here, and Maruti Suzuki’s numbers were solid—but not enough to impress investors.

Major stats: the automaker posted a 13% rise in net profit to ₹3,525 crore this quarter, with revenue climbing 16% to ₹38,492 crore. Both the numbers met investor expectations.

The snag: margins slipped slightly to 11.6% from 11.7%. Rising discounts, intensified competition from Tata Motors and Hyundai, and shifting consumer preferences are putting pressure on Maruti’s positioning.

The bigger worry: for the first time in 40 years, India’s best-selling car wasn’t a Maruti. Tata Motors’ Punch dethroned Wagon R and Swift to become the country’s top-selling car in 2024—a clear sign that consumer demand is shifting towards SUVs and spacier vehicles.

Why it matters: the entry-level car market, one that is ruthlessly competitive, is slowing, and Maruti is struggling to shake off its “budget brand” tag. Meanwhile, Tata and Hyundai are dominating the high-margin SUV and EV space, areas where Maruti has been slower to expand.

Zoom out: for now, the numbers set the stage for other auto giants reporting in the coming weeks.