Maruti Suzuki India July-Sept sales, profit hurt by higher consumer costs
NEW DELHI, NNA – India’s top carmaker Maruti Suzuki saw a drop in net profit of nearly 10 percent in the July-September quarter from a year earlier as higher gasoline and auto insurance prices dampened consumer demand.
Maruti Suzuki India Ltd., owned by Japan’s Suzuki Motor Corp., said Thursday that its net profit for the second quarter fell 9.8 percent from a year earlier to 22.4 billion rupees ($306 million). Revenue increased 0.5 percent to 229.5 billion rupees, while sales fell 1.5 percent to 484,848 units.
Chairman R. C. Bhargava attributed the fall in the second quarter to higher fuel prices and auto insurance premiums.
Under new regulations effective in September, buyers of new cars must purchase a three-year auto insurance policy instead of the one-year coverage previously required.
In the April-September period, Maruti Suzuki's net profit rose 4.3 percent to 42.1 billion rupees, as sales value increased 12.4 percent to 433.6 billion rupees and units sold rose 10 percent to 975,327 units.
For the full year to March 2019, Maruti Suzuki is aiming for 10 percent growth by boosting sales of low-emission, compressed natural gas vehicles.