Maruti Suzuki India Sees Strong Vehicle Sales Growth in June Quarter

The leading four-wheeler players, Maruti Suzuki India, Mahindra & Mahindra along with Hyundai Motor India had a difficult operating environment in the June 2026 quarter, given rising steel and copper prices, and their impact on operating margins and net profit. However, a standout feature for the quarter was the 29.3% y-o-y growth in vehicle sales by Maruti Suzuki India from its recently commissioned second plant in Kharkhoda, Haryana, and the full benefit of this expanded capacity is expected during the current financial year. Maruti Suzuki India grew its total vehicle sales by 29.3% y-o-y to 6.82 lakh vehicles. The company highlighted a 44.6% surge in SUV sales for models like Grand Vitara, Invicto, Jimny, Victoris . The company had recently commissioned its second plant in Kharkhoda, Haryana and it enabled the above growth. For perspective, the company’s total vehicle sales grew 1.1% y-o-y to 5.27 lakh units in the June 2025 quarter. Strong vehicle sales in the June 2026 quarter helped Maruti Suzuki India’ standalone revenue from operations grow 35.9% y-o-y to Rs 52,455.7 crore. Its average realization per vehicle also rose 5.2% y-o-y to Rs 7.68 lakh. Nevertheless, Maruti’s cost of materials consumed rose nearly 420 basis points y-o-y to 61% of standalone revenue from operations, and that was largely owing to higher input costs like steel and copper. Higher operating costs resulted in Maruti Suzuki India’s operating profit margin shrinking 380 basis points y-o-y to 8.2%. And its net profit also shrank by nearly 11 % y-o-y to Rs 3,352 crore. The core automobile business for the respective four-wheeler companies is reflected in their standalone quarterly results. For Mahindra & Mahindra, the largest player in the SUV segment, total SUV vehicle sales grew 15% y-o-y to 1.74 lakh units, and it benefited from strong demand for electric vehicles like XEV 9S. Meanwhile, in its farm equipment division, where the company is also the largest player, total tractor sales grew 18% to 1.58 lakh units. For perspective, Mahindra & Mahindra’s SUV sales grew 22% y-o-y to 1.52 lakh units in the June 2025 quarter, and its tractor volumes grew 10% y-o-y to 1.34 lakh units. Meanwhile, the growth in SUV and tractor sales helped the company’s standalone revenue from operations rise 23% y-o-y to Rs 41,919.7 crore in the June 2026 quarter. For Mahindra & Mahindra, too, cost of materials rose 130 y-o-y basis points to 73.2% of standalone revenue from operations. Higher raw material costs resulted in the company’s operating profit margin also declining nearly 200 basis points y-o-y to 12.2%. However, a lower tax burden helped the company’s standalone net profit grow 6.8% y-o-y to Rs 3,685 crore. Hyundai India’s total vehicle sales declined 1.3% y-o-y to 1.78 lakh units. The company has highlighted temporary production disruptions along with a 19.6% y-o-y fall in export vehicle sales. A bright spot was the 7.6% y-o-y growth in SUV model sales like Venue and Creta to 97,456 units. Nevertheless, the company’s standalone revenue from operations was broadly flat y-o-y at Rs 15,865.3 crore. Its average realization per vehicle also fell 2.3% y-o-y to Rs 8.79 lakh per vehicle. Higher raw material costs resulted in its operating profit margin also declining nearly 420 basis points y–o-y to 9.1%. And net profit also declined nearly 34% y-o-y to Rs 883.1 crore. Maruti Suzuki India had a standalone Return on Equity of 14.5%, according to Screener.in, and it was 23.1% for Mahindra and Mahindra, and 30.3 % for Hyundai Motor India. Maruti Suzuki e Vitara, its first all-electric SUV, is expected to be launched this calendar year along with the new Brezza variant, amongst others. Mahindra & Mahindra’s launches for the current calendar year include the Scorpio N facelift and BE.05, an electric SUV. Hyundai Motor India launches include Hyundai Creta Electric. Investors will be clearly monitoring trends in key raw material prices, like steel and copper, going forward. Also, with the start of the festive season a few weeks away, investors will also be watching demand conditions and any signs of premiumisation of vehicles sold. Maruti Suzuki India has also announced price hikes of up to Rs 30, 000 per vehicle across its range, and other players have also announced price hikes. The above trend should help auto companies to deal with higher input costs, going forward. Maruti Suzuki India trades at a standalone P/E of 31.9 times, and over the past 5 years, it has traded between 26.5 times and 85.3 times. Mahindra & Mahindra trades at a standalone P/E of 25.9 times, and over the past 5 years, it has traded between 18.7 times and 40.3 times. Hyundai Motor India trades at a standalone P/E of 36.4, and over the past 5 years, it has traded between 24.5 times and 42.4 times. Maruti Suzuki India is expected to see the full benefit of its recently commissioned second plant in Kharkhoda, Haryana during FY27. Readers could add Maruti Suzuki India, and the other auto stocks, to their watchlist of stocks for 2026. Amriteshwar Mathur is a financial journalist with over 20 years of experience. The writer and his family have no shareholding in any of the stocks mentioned in the article. Disclaimer: The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. 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