Maruti Suzuki faces over 4 Lakh pending orders amid supply constraints
Maruti Suzuki, India’s largest carmaker, is currently facing a significant backlog of orders with over 4 lakh units pending delivery. The company recently shared details about its order bank during an investor meeting held on April 26. Rahul Bharti, Executive Director of Corporate Planning and Government Affairs at Maruti Suzuki, revealed that the total order book as of that morning amounted to approximately 412,000 units, with one-third of the backlog consisting of CNG models. Additionally, the newly launched SUVs have also received a substantial number of orders.
Considering Bharti’s statement, it can be estimated that Maruti Suzuki has a backlog of around 1.4 lakh units of CNG models. In the previous fiscal year, the carmaker sold approximately 3.3 lakh CNG cars, with a penetration rate of 20 percent throughout the period. Maruti Suzuki holds a dominant position in the CNG space, offering 13 models that provide the greener fuel alternative, although Tata has recently entered the market as well.
In terms of production, Maruti Suzuki manufactured over 1.44 lakh units in April 2023 at its Gujarat plant. However, production activities were affected by the shortage of electronic components, which has been a challenge for the automotive industry globally.
During the 2023 Auto Expo, Maruti Suzuki showcased two of its latest models, the 5-door Jimny and the Fronx crossover SUV. The upcoming Jimny has already received significant attention, accumulating nearly 25,000 bookings. Similarly, the Fronx has garnered over 15,500 pre-launch orders as of the end of March.
Furthermore, the Grand Vitara has experienced strong demand, particularly for its strong-hybrid variants, which accounted for approximately 28 percent of the total bookings in February. This marks a notable milestone for Maruti Suzuki as it introduces hybrid technology to its lineup.
Despite the challenges posed by supply constraints and material shortages, Maruti Suzuki continues to attract substantial demand for its vehicles, solidifying its position as a leader in the Indian automotive market.