MARUTI

faces a choppy Q1 as domestic demand cools sharply

Dealer dispatches dropped 7.4% year-on-year in June—the second consecutive decline—while retail deliveries slipped amid high inventory and weak urban sentiment. Entry-level small cars are particularly hit, with compact car sales falling 13% in June as affordability constraints bite. SUVs and rural demand provide some resilience.

is pivoting to exports, targeting 4 lakh units in FY26 (a 20% jump) to offset domestic sluggishness. There's a near-term risk from rare earth supply constraints potentially limiting e-Vitara EV rollout, though domestic EV contribution remains minimal. Key things to watch in Q1: export ramp-up progress, domestic pricing moves, and inventory correction timelines. The fundamentals remain solid, but execution during this transition period will be crucial.