Maruti Suzuki surprises with volume growth, margin expansion; chance of earnings upgrade possible

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According to ET Intelligence group: Maruti Suzuki that is the Inida’s largest car maker that is continuing the surprise on the sheets with increasing the volume by two counts and marginal expansion. Maruti’s overall volume has grown more than 12 percent for its second quarter again in a row. This double that induistry growth . Even on talking about the disele industry where industry has seen a decline of 2.3 percent it has recorded 8 percent growth in the same sector.
Reason of such increasing and growing volume rates are the launches with generous discounts and increasing rural demands.  If we talk about rural area than it contributes to overall 34 percent of the overall sales volume.  Maruti is continuing to grow its 10-12 percent again this year as it  will be boosting the hike of the government employees thus they will be eager to buy cars .  Maruti’s recent launches includes First SUV cross over  S cross , Hybrid Ciaz and Hybrid Ertiga that will be seen in new showrooms. It has open up new platforms named NEXA that will be show casing the latest trends.

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