Maruti Suzuki’s quarterly profit reduced by 3%

Maruti Suzuki may not be a famous auto maker globally but when it comes to Indian market, they have really done a tremendous job. While driving on the roads, you can easily find someone driving a car by Suzuki. However, company has reported a decline of almost 3% from previous year. The total profit of the company was RS.639.8 crore by then end of quarter and the company has also announced to increase production of diesel engine cars by making them 400,000 by the end of this year.

In the first quarter of 2011, company had posted their net profit as RS.659.9 crore so you can get an idea that the sales have reduced for company this time. The decline is not very much as there is only 3% reduction in the profit of company as compared to previous year. The net sales of Maruti Suzuki have increased though. The total profit for the company is RS.11,486.4 crore in the first quarter of 2012 which is 17.2% more as compared to the Rs.9,796.7 crore profit that was posted by the company for year 2011’s first quarter.

Wherever you go in India, you will find someone driving this car so you can get an idea that the company really holds a strong position in the country since a long time. The sales of the company have increased 4.9 % in first quarter of 2012. Total number of vehicles sold by company is 360,334 during first quarter of 2012. Comparing this number with 343,340 units sold in in first quarter of 2011, one can say that the company is doing a good job in the country.

The company has stated that there is nothing wrong with the performance of cars and not problem at all in production process as well. The problem occurred due to current economical breakdown in global market. The currency movements during March were not in favor of Suzuki and that is why they couldn’t sell a satisfactory number of cars. The internal cost control always plays an important role in selling cars and that is where Maruti Suzuki has to work on.

Managing Director and Chief Executive of Maruti Suzuki, Mr. Shinzo Nakanishi said, “Currency is quite stably now and Maruti Suzuki is working on to import Yen so that their cars can be priced properly.” He hoped that they will be able to get rid of the Yen’s impact on Indian Currency. If they will be able to do so, this will really be a great achievement by the company.

Due to current increment in Fuel and Gasoline prices, Indian customers are forced to buy vehicle diesels. That is the main reason why Suzuki is working to make such vehicles that run on diesel. Unless, petrol prices don’t become stabilized all over the world, people will keep looking those cars that are hybrid or have good fuel efficiency. The increasing fuel prices have not only disturbed the production process of the company but it has also disturbed the common user as well. That is the main reason why you will find consumers looking for diesel vehicles in the market.

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