Tuesday, 22 November 2011

Maruti to miss the Sales target this year, may not post any growth in FY11-12

Maruti's Chairman, Mr. RC Bhargava said in an interview for the Reuters India Investment Summit that the carmaker may miss the growth target this year. He said "we would be lucky even of we reach the breakeven levels in current Financial Year"

He states the heavy loss of production owing to labour unrest the company has lost huge revenue and thus will post lower sales.

Bhargava had said in August he expected Maruti, 54.2 percent-owned by Japan's Suzuki Motor Corp, to post single-digit sales growth this fiscal year ending in March, a far cry from its 25-percent rise last year.

He said on Monday he expects the Indian automobile industry to grow 2-3 percent this fiscal year, compared with the record 30 percent growth it had clocked a year ago.Slowing economic growth, rising interest rates and fuel prices as well as falling stock markets have dampened sentiment in the Indian auto market.


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