Maruti shares tumble 4% despite impressive October sales, decent Q2 numbers; what is weighing on sentiment?

However, there is a section of market participants who, according to news reports, are sceptical about the sustainability of the sales growth in the long run.

The auto sales got a major boost after the GST rate cuts announced in early September 2025.

On Saturday, November 1, Maruti Suzuki India reported a 7% growth in total sales at 2,20,894 units as compared to 2,06,434 units in the same month last year.

Total domestic sales, including commercial vehicles, stood at an all-time high of 1,80,675 units as against 1,63,130 units in the same month last year, up 10.75 per cent, the company said in a regulatory filing.

Domestic passenger vehicle sales were at 1,76,318 units as against 1,59,591 units in October 2024, up 10.48%, it added.

Sales to other OEMs (Toyota Kirloskar) were at 8,915 units, and exports were at 31,304 units, Maruti Suzuki India said.

The company said sales of mini cars comprising Alto and S-Presso models were down at 9,067 units from 10,687 units in the same month last year.

On the other hand, sales of compact cars Baleno, Celerio, Dzire, Ignis, Swift, and WagonR increased to 76,143 units from 65,948 units in October 2024.

Sales of utility vehicles, comprising Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, Victoris, and XL6, also increased to 77,571 units last month from 70,644 units in the year-ago month.

Van Eeco clocked 13,537 units of sale last month, up from 11,653 units sold in October 2024, the company said.

Maruti Q2 concall

The GST rate reduction has sparked the revival of small cars, proving wrong the perception that Indian consumers have moved up to aspirational and bigger segments, and some of the car manufacturers are expected to revise their product mix, Maruti Suzuki India Chairman R C Bhargava said on Friday.

The company is also close to making a decision on its plan to set up a fifth manufacturing plant, and an announcement is expected in the next few months, Bhargava told reporters in an earnings conference.

On account of the impact of the GST rate cut on overall car sales, Bhargava also said Maruti Suzuki is likely to revise its production and sales projections for 2030-31.

"We had record retail sales during the festival period, largely driven by small car sales. Bigger cars are also selling, but not quite that much," Bhargava said.

When asked about the growth expectations, he said, "The small car segment (18 per cent GST segment), I do expect that double-digit growth should be possible for some period to come in the future."

At the moment, Bhargava said, out of the total bookings of 3.5 lakh units that Maruti Suzuki has, 2.5 lakh units are for cars in the '18 per cent GST segment'.

While the beneficiaries (manufacturers) of the small car sales at the moment are limited, Bhargava said, "I think many carmakers will now realise what the nature of the Indian car market is, and I expect some of them at least to revise their product mix."

Noting that Maruti itself will have to change, he said, "We have already become much more flexible in our manufacturing. Earlier on, we were not flexible in our production lines. We (now) have far more production flexibility than we ever had. We will now be able to produce the vehicles that the customer actually demands, matching the demand with supply..."

Bhargava also noted that, considering the GST rate change and its impact on small cars, the company's earlier forecast of "production and the sale projections for 2030-31 are bound to undergo some changes," and the company is in the process of finalising its long-term projections.

Earlier, Maruti Suzuki India had stated that it was looking to double its turnover to around Rs 1.68 lakh crore by 2030-31 from the FY22 level, when it clocked net sales of Rs 83,798 crore. It set a target of total annual production of 40 lakh by 2030-31.

In August this year, Suzuki Motor Corporation Representative Director and President Toshihiro Suzuki announced an investment of Rs 70,000 crore in India over the next 5 to 6 years.

Maruti Q2: Fine prints

Analysts tracking the stock opine that the Q2 numbers were good but missed estimates due to higher commodity & promotion costs (which they expect to continue, along with margin pressure from EVs) and lower non-operating income.

However, an improved mix from new launches and better scale should partially offset the drag on margins ahead.

The management expects the overall industry to grow by 6% and its small cars (18% GST bracket) to grow by ~10% in H2FY26 & beyond.

"Post-festive sustenance of demand and response to new launches and related cannibalisation are to be watched out for," a news report quoted analysts at an investment firm.

Maruti share price trend

Shares of the company have rallied over 26% in the past six months. But the stock has slipped 0.44% in the past 30 days and over 4% in the past five sessions.