Maruti Suzuki India Ltd’s December sales volume seems to signal that the slowdown woes are behind it. Apart from the 3.5% year-on-year (yoy) sales growth, dealer feedback indicates that demand for passenger vehicles is improving and inventory levels are normalising at 4-5 weeks. Graphic: Satish Kumar/MintClick here to view enlarged graphicApart from a recovery in demand, there is reason to believe that Maruti will ride the transition to BS-VI emission standards. A report by Motilal Oswal Financial Services Ltd said: “The repercussion on passenger vehicles would likely be mixed, with a limited impact on petrol vehicles (2-3% increase) but a high impact on diesel vehicles (8-12%). While this reflects investor faith in Maruti’s leadership in the industry, any dip in sales growth could puncture the euphoria on the street.

Source: Mint January 01, 2020 18:56 UTC