Maruti FY25 Annual Earnings Summary

Stringent CAFE-3 norms from April 2027 may require significant EV/ hybrid mix. Super credits and penalties are still under policy consideration.

Chairman noted 88% of the country is not participating in car growth, with entry-level segment shrinking.

CFO noted that commodity prices are dynamic and could reverse, impacting margins. Non-ferrous metals have already seen some increase.

CFO acknowledged that yen has started appreciating, which could moderate the forex benefit seen in Q1.

Discounts rose 50% QoQ to ₹21,700 per vehicle due to heat wave and elections. Demand recovery depends on festive season.

Affordability challenges persist in the small car segment, with no clear recovery timeline despite limited edition launches.

Higher discounts (INR 29,300/car) are compressing margins; sustainability depends on demand recovery.

CFO noted yen uncertainty due to macro factors (US elections), though hedging is being stepped up to reduce volatility.

Entry hatchbacks saw degrowth, mid-hatch flat, while premium hatch grew. Weakness in lower segments remains a challenge.

Management acknowledged that EV profitability per vehicle will not match ICE for a long time due to higher costs and government support needed.

Multiple OEMs are expanding capacity, which could increase competitive intensity and pressure margins.

Management flagged that domestic steel producers may use the safeguard duty to raise prices, impacting margins.