The carmaker, which has already taken two months of production cuts, plans no further correction in inventory or an increase in discounts as the country heads into the festive season. The period beginning with Onam in the South on 6 September and Ganesh Chaturthi on 7 September in Maharashtra till Diwali in early November is considered auspicious for buying.

“Our dealer network stock is currently at 36 days, and we aim to maintain this level through the festival season”, Partha Banerjee, senior executive officer, marketing and sales, Maruti Suzuki, told Mint. “With production reducing due to fewer working days during the festive season, we do not anticipate a rise in offers and discounts. However, we may slightly prune offers for popular models like the Brezza to manage demand efficiently.”

August sales

Maruti Suzuki’s passenger vehicle dispatches fell 7% on year to 145,570 vehicles in August, reflecting a sector-wide trend—the maker of Swift commands a 40% share of this market. Industry estimates suggest total passenger vehicle wholesales fell to 3,50,000-3,55,000 units during the month from about 360,000 a year earlier.

“All three top carmakers posted a decline in sales in August, signalling evident stress in the market that is likely to persist,” Gaurav Vangaal, associate director, S&P Global Mobility, said. “If the inventory does not get corrected during the upcoming festive season, we could see a significant production correction in the final two months of the year, with steeper discounts.”

According to the government’s Vahan dashboard, which records registrations of passenger vehicles, retails sales fell 4.1% year-on-year to 303,969 units in August as of 1 September. The decline in registrations was led my major carmakers such as Hyundai (-12.8%), Maruti Suzuki (-8.4), MG Motor (-8.7%), Tata Motors (-3.3%) and Kia (-2.4%).

Mahindra and Mahindra and Toyota Kirloskar Motor recorded the highest increase in their wholesale dispatches at 24% and 18.5% year-on-year, respectively.

Festive season optimism

Maruti Suzuki is optimistic after a 7% increase in bookings in Kerala for the Onam festival, which is expected to convert into higher retail sales in September.

“That’s a positive sign, because we feel in the month of September, when the Onam festival happens, all these bookings will be converted into retail,” Banerjee said.

In August, the SUV segment contributed 54.9% to the total passenger vehicle market, with Maruti Suzuki’s share at 28.8%, up from 25% last year.

In September and the festive season, Maruti Suzuki said it expects to keep its stock levels steady with 165,000 bookings, with 35-40% for CNG vehicles. “The waiting period for popular models like the Brezza is manageable and mostly related to specific colour choices,” Banerjee said. “We expect a strong retail performance during the festive period, particularly with Navratri starting in early October.”

Maruti Suzuki is also seeing growth in its CNG segment, with a penetration rate of 34% in August. Its SUV segment recorded a 6% increase in sales, while wholesale dispatches of small cars in the domestic market declined. The contribution of strong hybrid vehicles in Maruti’s sales increased from 9% last year to 16% this year, the company said.