Covid-19 impact: Maruti Suzuki's price realisation at 7-quarter low

Firm attributes dip in average selling price to sales of more small cars and exit from diesel

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Analysts said this played a role in the about 100-basis point decline in Maruti’s operating profit on a YoY basis, despite benign raw material and labour cost

Indians’ preference for smaller and low-priced cars in the pandemic-hit economic environment is affecting Maruti Suzuki’s price realisation, or average selling price (ASP) per vehicle.  The carmaker’s price realisation was down 5.6 per cent YoY to around Rs 4,50,000 per vehicle during June-September, the lowest in the last seven quarters. During same period in 2019, its ASP was about Rs 4,77,000. There has been a sharp recovery in Maruti’s sales volumes in recent months, but the demand is largely for cheaper models. This created a wedge between ...