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Maruti Suzuki Fears Decrease In Sales
The reason cited for this was the insecure pricing of the crude oil by which it got altered in terms of 0 a barrel making adverse effects on global economy. However, Maruti is quite happy and confident with the current fiscal where it will secure the volume of 1.2 million units at an average of 10000 units a month. In terms of profit, the company sees a mild threat from the increased commodity prices and fluctuating foreign exchange rates. He said as far as the next fiscal nothing could be predicted and in near future it may be bullish effect on Indian economy. Maruti enjoys 50% share in the Indian car market and is increasing its capacity to 5million annual units in another two years. For this purpose, the company is installing two new facilities each having capacity of 2.5 lakhs in Manesar plant.
In another move, it is expediting the first plants by three months to match the Q3 of 2012 fiscal and the next to be completed by March 2013. The current capacity of 12 lakh annual units (8.5lakhs in Gurgaon and 3.5 lakhs in Manesar) will be increased to 17 lakhs from then on. Ever since the European market saw the fall due to the scrapping of incentives for scrappage scheme, Maruti"s overseas market had been hit. But, he said, the company searched the alternative sources to compensate the fall. With this, the current fiscal will see the closing by 1.47 lakh units as much as the previous fiscal. During the last fiscal, Maruti exported 4000 units to Egypt but the current political furore seems to affect the numbers this year. In the domestic market, the company intends to appoint 100 more outlets during the next fiscal with the existing 900 outlets.
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