Maruti Suzuki announces Q2 results; decline in profits

Maruti Suzuki recently released its results for the second quarter of the financial year 2019-2020 and announced a decline of 40 per cent in its profits. This has been a tough year for the entire Indian auto industry with even Maruti Suzuki, the market leader feeling the pinch.     

The Indo-Japanese automaker saw its net sales drop by 25.2 per cent compared to the same period last year. In the domestic market, the carmaker sold 3, 12,519 units, which was 31.4 per cent lower than the previous year. In terms of exports, it moved to 25,798 units.  

They registered a net sales of Rs. 34.85 crores which was 19.6 per cent lower compared to the same period the previous year. In the first half of FY2019-20 (April-September), Maruti sold 7, 40,911 units, which was 24 per cent lesser than the sales in the corresponding period last year. The carmaker sold 6, 87, 000 units in the domestic markets (-25.3%) and exported 53,911 units. 

In a statement, the automaker said that the main factors for drop in profits was the increase in the cost of acquisition of cars thanks to BS-VI and safety norms, higher insurance costs, higher road tax, lower availability of finance and increased down payment.