Latest Car News in India

Maruti Suzuki to face a downfall in sales growth this financial year

Maruti Suzuki India (MSI) has announced that there are possibilities that the company will not be able meet the growth volume targets this financial year. The leading automaker in the country has suffered trouble from its workforce in the recent past and is on the recovering stage. The worker’s strike at its manufacturing plant has caused MSI an estimated production loss of 50,000 cars together with financial loss of INR 1500 Crores.

Mr. RC Bhargava, the Chairman and Board of Director for MSI said that he is not sure about the exact sales numbers growth this financial year, but the company will consider itself fortunate if it even surpasses the last year’s sales figures. There are about four months left in completion of this fiscal, and chances are that the company might close the sales nearby the last year’s numbers, he added.

The market leader that holds a strong grip on small car market, as it recorded an increase of 25 percent in the last financial year with the sales of 10 Lakh 27 Thousand cars.

The people who have two to three cars in their family and usually replace them after a certain period of time have applied brakes on buying a new car this year, while the young or first time car buyers are purchasing cars with ease, as said by Mr. Bhargava.

MSI which once hold around more than 50 percent of market share in India has plunged to 40 percent in the recent times. The increasing competition with the global carmakers like Ford Motors, Volkswagen, Hyundai Motors and Honda Motors along with the production loss due to strike, furthermore with rise in petrol prices and interest rates are responsible for this drop in market stake.