Maruti Suzuki has reported fiscal second quarter net sales down 6.7% to INR158,574m (US$2.2bn). Net profit fell more sharply – by 25.8% to INR7,897m ($160.4m).
Second quarter sales, partially reflecting output lost during a strike at the Manesar Suzuki Swift plant that lasted from June to October, were off 15.7% to INR75,375m ($1.5bn).
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Net profit plunged almost 60% to INR2,404m ($48.8m).
“During the quarter, the domestic auto industry remained sluggish on account of increase in fuel prices and hardening interest rates, leading to higher sales promotion expense. The company’s bottom line was also impacted due to adverse foreign exchange rates,” Maruti said in a statement.
“The company lost 28,539 units during the quarter due to instances of industrial unrest at its Manesar facilities.”
Q2 unit sales fell 19.6% to 252,307 cars.
The redesigned Swift was introduced to India in the second quarter – well after other markets – and Maruti received “overwhelming” orders of over 100,000 units within a few weeks of the launch. The Manesar industrial unrest seriously affected the company’s ability to deliver some of these cars.
