Japanese machinery trader Maruka to quit India on slumping automotive demand
NEW DELHI, NNA - Maruka Corp., a Japanese industrial and construction machinery trader, will withdraw from India and liquidate its subsidiary Maruka India Pvt. Ltd. due to weak demand in the local automobile market.
Maruka India, established in 2007, has been supplying such products as presses and related apparatus, injection molding machines and die-casting machines to the local affiliates of Japanese car component makers, but has faced challenges over the last two years.
For the fiscal year to August 2018, Maruka India booked a net loss of 4.9 million rupees ($64,600) and the net loss expanded to 20.3 million rupees in the following fiscal year to August 2019.
“We had been considering withdrawing from India even before the COVID-19 outbreak spread,” a spokesman for Maruka told NNA. He added that it will continue to provide after sales service to existing clients.
On the back of sapping consumer sentiment, India’s new vehicle sales suffered their first drop in six years in the year to March 2020. Total sales of new passenger cars and commercial vehicles plunged 20.3 percent from a year earlier to 3,493,367 units, according to the Society of Indian Automobile Manufacturers.