Maruti Suzuki second quarter profit slumps 37 percentOctober 24th, 2008 - 7:00 pm ICT by IANS
New Delhi, Oct 24 (IANS) India’s largest automobile manufacturer Maruti Suzuki India saw its net profit slumping 37 percent in the second quarter this fiscal, as compared to same period last year, it said Friday. The company posted $65.8 million in net profit in the period under review, down from $103.6 million in the corresponding period in 2007-08 - its lowest quarterly profit in three years - the auto major said in a regulatory statement.
Maruti’s cumulative half yearly profits also slumped 21.1 percent leading to speculations of overall negative growth for the automaker in this financial year with the economic crises only worsening.
The four-wheeler maker, which also is set to launch its new car in the compact segment - the A-Star- next month recently commissioned a new engine plant in Gurgaon.
According to a recent industry report, costlier auto loans and a high rate of inflation in the past few months have hurt vehicle sales. Vehicle sales declined one percent as inflation went up to 12.63 before easing over the past few weeks.
Additionally, a seven-year high interest rate on auto loans has also cramped spending, the Society of Indian Automobile Manufacturers (SIAM) said in a report released Oct 13.
July and August witnessed a fall in vehicle sales for the first time in two and a half years, though it grew 5.3 percent to 600,385 for the six-month period till September, half the last year’s pace, SIAM said.
- Maruti Suzuki quarterly net profit declines 59.81 percent - Oct 29, 2011
- August car sales down over 18 percent: SIAM - Sep 10, 2012
- Auto industry welcomes rate cut - Apr 17, 2012
- Auto, realty sectors unhappy at interest rate hike (Lead) - Jul 26, 2011
- Auto stocks slip as traders worry over slack sales - Jul 16, 2011
- Maruti Suzuki sales drop for the sixth month running - Dec 01, 2011
- High interest rate, fuel prices slow down car sales (Lead) - May 10, 2012
- Auto, realty sectors unhappy at interest rate hike - Jul 26, 2011
- Rate hike, fuel cost hit car sales - Nov 10, 2011
- Interest rates, fuel hikes dampen automobile sales in June (Roundup) - Jul 01, 2011
- Interest rates, fuel hikes dampen automobile sales in May: SIAM - Jun 09, 2011
- China's auto sales expected to hit 20 mn in 2012 - Jul 27, 2012
- Car sales grew only 3.40 percent in April - May 10, 2012
- Car sales to fall in 10 years despite growth in January (Lead) - Feb 08, 2012
- SIAM hopes auto sales will pick up from mid-September - Sep 02, 2011