Maruti Suzuki India, the country’s largest carmaker, on Friday posted a 27.3 per cent drop in net profit for the April-June quarter amid an industry-wide slowdown in demand, even as it beat analysts’ estimates. The company reported a net profit of Rs 1,435 crore in Q1FY20, compared to Rs 1,975 crore in the year-ago period.
Maruti Suzuki - country’s largest passenger vehicle manufacturer - is expected to report subdued growth revenue and net profit in the first quarter of the current financial year as sales across segments declined by double digits.
The New Delhi based vehicle manufacturer will continue to see decline in revenue due to the high base in the corresponding period and 19% fall in sales in the April to June quarter.
In ordering a probe, CCI has acted upon complaints Maruti does not permit its dealers to give extra discount to their customers beyond an approved level and if a dealer is found doing so, penalty is levied depending upon the number of incidents found in a particular financial year.
In its order, the CCI has observed that Maruti has indulged in resale price maintenance by fixing the maximum discount which its dealers could offer to end-customers.
Maruti Suzuki has snatched one more position from Hyundai Motors India in the list of top 10 models sold in May, bagging eight places. Till April, seven Maruti models featured in the SIAM’s ten best-selling passenger vehicles list, while Hyundai bagged the remaining.
Hyundai’s hatchback i10, which has been in the top 10 list for many years, did not feature in May’s list.
Maruti Suzuki cars are the most efficient in terms of emissions and fuel consumption, with a CO2 emission of 109.5 gram per km and average fuel consumption of less than 5 litres for a distance of 100 km, according to the latest fuel consumption compliance report released by the Union transport ministry for 2017-18.
Among the top 10 carmakers, Toyota Kirloskar Motor had the highest average carbon dioxide (CO2) emission at 160.7 g/km, while in terms of fuel efficiency, Toyota cars consume around 7 litres of fuel for a 100-km distance.
Analysts have raised concerns over Maruti Suzuki not disclosing more details pertaining to the partnership with Toyota, saying that there is a lack of communication and the company needs to be more open about the collaboration and its implications in the medium and near term.
In a letter to Maruti Suzuki CEO Kenichi Ayukawa, investment management and research firm Sanford Bernstein asked for clarity on what is Maruti offering Toyota in terms of pricing arrangements, who manufactures which model eventually and what kind of manufacturing margins will Maruti earn.
In a reflection of how weak consumer demand is, Maruti said it had cut production by over 18% year-on-year (y-o-y) in May, the fourth consecutive month in which it trimmed output. Despatches to dealers had fallen by 24% y-o-y, among the steepest monthly declines in at least seven years.
Market watchers said demand had flagged due to the increased prices of cars resulting from rising insurance premiums and hikes taken by manufacturers for new safety features.
The country's largest car maker Maruti Suzuki India (MSI) has cut vehicle production by over 18 per cent in May, according to a regulatory filing. It is the company's fourth consecutive month of taking a production cut. The car market leader produced a total of 1,51,188 units in May, including Super Carry LCV, down 18.1 per cent from 1,84,612 units in the year-ago month, MSI said in the filing.
Maruti Suzuki India ltd - country’s largest passenger vehicle manufacturer on Tuesday announced that its premium hatchback Balwani has crossed the 6 lakh units sales mark in the a record time of 44 months. The company claims that in the premium hatchback segment, Baleno is the fastest to reach this sales milestone.
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