Friday, July 27, 2012
By Shilpa Chopra
Maruti’s Q1 profits hit, Suzuki share 10 percent down
Manesar plant seems to have become a matter of concern for Maruti. It has made it to suffer in 2011 and it is making it suffer this year as well. The production of Maruti Swift and Maruti Swift Dzire is already down and now the reports have come in that it has severely impacted the profit of the car maker by 11 percent in the first quarter. The memories of the 2011 unrest seem to have been replayed in 2012. As the lockdown is in place, Maruti is suffering huge loss everyday and supply of Swift and Dzire seem to take months to normalize now.
|See More Maruti Swift Photos||Get Maruti Swift Price|
Meanwhile, other car makers seem to have arranged a party for their cars. Mahindra yesterday launched the new Mahindra Verito Refresh model of it sole sedan with lots of features at attractive price and other car makers have tightened seat belts to take the most out of this situation. Where small cars and Swift rivals such as Ford Figo, Skoda Fabia, Fiat Punto and most importantly Hyundai i20 will be benefited due to the loss of Swift production, new Verito, Tata Indigo, Toyota Etios and other cars will be benefitted with the no supply of Swift Dzire.
|See More Maruti Swift Dzire Photos||Get Maruti Swift Dzire Price|
However, it has been seen that car buyers are willing to wait for some time and are booking Swift and Swift Dzire in huge numbers. Expert’s analytics have said that this is the sentiment about Maruti cars and Maruti car buyers are accustomed to a waiting period ranging from one month to six month on some popular cars such as there. On the other hand, the production loss is expected to surge to $15 million per day and this will have negative impact on the preparations for Diwali. Meanwhile, the Maruti share has also seen a downslide as investors have pulled off $ 700 million and Suzuki’s share was also down by 10 percent.