Friday, October 07, 2011
By Pranjal Gera
Shrink in profits of automakers like Tata Motors and Maruti Suzuki in second quarter
Recent studies confirm that the chief passenger car manufacturer in India; Maruti Suzuki is estimated to fall over 25% in the profits. According to a reputed stocking broking firm the major cause for the decline in profits in Quarter two of the current financial year, are the sales that are lowering day by day, fuel hike and components price rise has left the car consumer in disarray. Apart from this, one main reason especially for Maruti Suzuki is the workforce impasse going on at the company’s Manesar production unit. The Manesar plant rolls out Maruti Swift, Wagon R sedan Maruti SX4, and Swift Dzire.
The reports further said that the superior discounts that are offered by the companies sighting the festive season in an effort to increase sales will also end up on marginal show.
Tata Motors hasn’t performed as expected due to worry over the Jaguar Land Rover’s volume growth as the economic conditions in America and Europe are on the verge of instability.
Recently there was some amount of relief for Tata Motors in India, as it has recorded a high of 22 percent in its September sales this year. The company had appeared as the No.1 automobile manufacturer in Britain. In India, Tata Motors retail number of vehicles some of them namely Tata Safari, Tata Grande Dicor, Tata Indigo Manza and Tata Indica Vista.