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Maruti Suzuki Q1 Profits Expected To Fall
According to reports Maruti Suzuki is expected to report a 33.6 per cent drop in first quarter profits at Rs.438 crore. The company had posted a profit of Rs.660 crore during the first quarter of 2010.
The decline in Maruti Suzuki's profits is a result of two important factors. The first one being the 13-day long strike at Maruti Suzuki's plant in Manesar. With production losses pegged at Rs.420 crores, the company is aiming to increase production in the remaining part of this year. More that 13,000 cars were not built during the strike.
Maruti Suzuki's sales have also not been encouraging. The Alto small car was the only model that saw its sales increase consistently while sales of the rest of the Maruti Suzuki models suffered in June. Sales in the A2 segment, in which Maruti Suzuki has the highest stake, has seen a sharp slowdown.
Further, a sales slowdown was expected as the Indian car market has grown consistently in double figures in the past two years. Maruti Suzuki has also faced increased competition from Volkswagen and Hyundai Motors.
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