The average realization in the December quarter increased by 8.8 per cent year-on-year to Rs 4.3 lakh per car. High priced car models formed 17 per cent of total volume in December. The proportion may improve further as these cars have a waiting period of 18-24 weeks. Typically, discount level in December is elevated due to seasonal factors.This coupled with the effect of cash replacement exercise limits volume visibility.Analysts expect Maruti to report 5 per cent and 11 per cent volume growth for the current and the next fiscal respectively. If the company surprises with better volume growth for the quarter, it may prompt analysts to revise earnings growth upwards.

Source: Economic Times January 26, 2017 09:57 UTC