Maruti Suzuki second quarter profit slumps 37 percent

October 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.

Related Stories

Tags: , , , , , , , , ,

Posted in Business |