India’s largest automaker expects next year to be “much better” than 2020 as the economy recovers and consumers emerge from pandemic-induced lockdowns to buy their vehicles.
Maruti Suzuki India Ltd., the local unit of Suzuki Motor Corp. of Japan, expects retail sales in December to be “pretty good” as there are backorders with its dealers and the inquiry rate has held up even after the holiday season, President RC Bhargava said in an interview with Bloomberg Television on Wednesday.
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“The pending demand has been at the forefront of what is causing the increase in sales,” Bhargava said. “2020 has not been a good year. We lost the first quarter, so I definitely hope that 2021 is much better than 2020.”
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Sales of cars and sports utility vehicles typically increase each year in the run-up to the Hindu festival of Diwali, which this year was held in mid-November. Bhargava said it was “a bit” surprising that demand has continued, as many expected a drop after the end of the festival period. Inventories at dealerships are probably at their lowest level in years, he said.
Operations at the automaker were hit when lockdowns were imposed earlier this year and Maruti gradually increased production. “Now we are operating at full capacity,” Bhargava said. The company’s sales, including exports, increased 1.7% to 153,223 vehicles in November.
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