India’s top car maker Maruti Udyog plans to alter its product mix in a bid to protect its margins, the firm’s chief said on Wednesday, according to Reuters.
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In response to a question on how a recent price cut of its Alto compact car would affect operating margins, managing director Jagdish Khattar reportedly said: “It doesn’t matter, it’s a long term strategy. Some balancing we can always do and margins can come from other products. We have that flexibility.”
According to Reuters, Khattar said Maruti had lost some export orders after a strike at a key vendor, DCM Engineering, which makes cylinder blocks.
“If we don’t export in that month (August), they (customers) cancel the order. We have lost some orders, but we are negotiating with them for the future,” Khattar told Reuters on the sidelines of an industry seminar.
Maruti is 54.2% owned by Japan’s Suzuki Motor, Reuters noted.
