Maruti Suzuki Q2 Profit Misses Estimates as Rising Costs Pressure Margins
India’s largest carmaker, Maruti Suzuki, reported a weaker-than-expected second-quarter performance as higher input costs and operating expenses dented profitability. The company’s standalone profit rose 7.3% year-on-year to ₹32.9 billion ($374 million) for the July–September quarter, missing analysts’ estimates of ₹35.93 billion, according to LSEG data. Operating margins also slipped to 8.5% from 10.3% a year earlier, reflecting pressure from rising commodity prices, promotional spending, and costs tied to a new manufacturing plant.
Total expenses for the quarter surged 15.4% to ₹387.63 billion, compared to a modest 1.4% increase in the same period last year. Maruti, majority-owned by Japan’s Suzuki Motor, said the decline in margins was driven by higher raw material prices and elevated advertising and sales promotion expenses. The automaker’s domestic sales — including those to other manufacturers — fell 5.1% to 440,387 units, while exports surged 42.2% to 110,487 units, helping offset weaker domestic demand.
Analysts attribute the dip in domestic sales to buyers delaying purchases amid expectations of tax-driven price cuts following India’s recent tax structure simplification. The new policy, which reduces levies on small cars, is expected to boost demand in the price-sensitive segment. Maruti has been ramping up its SUV portfolio to defend market share against rivals Hyundai India, Tata Motors, and MG Motor, but its shares fell 1.6% following the results.
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