Demand for new car launches pushes Maruti Suzukis wait period beyond 16 weeks

Key highlights:

• New launches have seen a surge in demand resulting in a wait period of 16-20 weeks
• Baleno, new D’zire and Brezza have a waiting period of 16 weeks
• Maruti Suzuki's revenues grew by 17.4% in Q1 to Rs 17,550 crore

Even as introduction of Goods and Services Tax (GST) impacted car sales and results of automobile companies like Maruti Suzuki, the strong 'waiting period' is a sign of hope for the company. 

The success of the new launches such as the Ignis, Vitara Brezza, new Dzire and Baleno has helped push the company's sales as the company posted a robust 14.3% growth in domestic sales as it sold 3.67 lakh vehicles during the quarter from 3.22 lakh vehicles in the same quarter last year.

Maruti Suzuki's key strategy to tackle competition and gain outperformance has been due to new launches at regular interval, said the company's management in a conference call with analysts.

This was seen as all the new launches have seen a surge in demand resulting in a wait period of 16-20 weeks. “Baleno, new D’zire and Brezza have a waiting period of 16 weeks, 16 weeks and 20 weeks respectively at present,” said a Karvy Stock Broking report.

This, it said, would help it at gaining market shares going ahead.

Exports remain a sore point for Maruti Suzuki in Q1