"It looks like the (margin) trend will continue this year," Tiwari said. Maruti Suzuki
saw fourth-quarter EBITDA margins falling to 10.8 percent from about 12.5 percent in the same quarter last year. EBITDA margins for the year fell to 14 percent from 15.9 percent a year ago.
The carmaker said it sold 458,479 vehicles in the three months ended March 31, down 0.7 percent.
The company, which helped raise car ownership in India nearly four decades ago with its iconic Maruti 800 model, has since also added cars like the Baleno and Alto hatchbacks.
However, Maruti Suzuki
saw negative sales growth in urban markets, Bhargava said.
Growing use of app-based cab services such as Ola and Uber Technologies Inc, tighter credit and market uncertainty ahead of India's general election have all weighed on the auto industry, hurting sales of private cars.
This has spurred a fierce battle for market share, forcing companies
to introduce heavy promotions to lure buyers.
Maruti Suzuki's net profit for the fourth quarter beat market expectations but fell 5 percent to 17.96 billion rupees ($256.10 million) from a year earlier.
The results compared with the 17.47 billion rupees average of 22 analysts' estimates compiled by Refinitiv Eikon. Total revenue from operations rose 1.4 percent to 214.59 billion rupees. Maruti Suzuki shares closed down 1.59 percent. The shares touched a more than three-week low earlier in the session.