Maruti Suzuki today announced its Q2 financial results for the period July-September 2019 and April-September 2019-20. The company sold a total of 338,317 vehicles during the quarter, lower by 30.2 per cent compared to the same period previous year. Sales in the domestic market stood at 312,519 units, lower by 31.4 per cent. Exports were at 25,798 units. During the quarter, the company registered net Sales of Rs. 161,204 million, lower by 25.2 per cent compared to the same period previous year. Net profit for the quarter stood at Rs. 13,586 million, lower by 39.4 per cent compared to the same period previous year. The company attributed this drop on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses, partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate.
This year, the automobile industry has seen a significant decline in sales owing to several factors. One of the main factors is increase in the cost of acquisition of the car due to various reasons coming together like implementation of more stringent safety and emission (BS6) norms, increase in vehicle insurance expenses and hike in road taxes in many states. Along with this, the lower availability of finance and increased down payment requirement have affected the affordability of customers to own cars.
In the first half of this year, the company sold a total of 740,911 vehicles, lower by 24 per cent compared to the same period previous year. Sales in the domestic market stood at 687,000 units, lower by 25.3 per cent. Exports were at 53,911 units. During the period, the Company registered Net Sales of Rs. 348,556 million, lower by 19.6 per cent compared to the same period previous year. Net profit for the period stood at Rs. 27,941 million, lower by 33.7 per cent compared to the same period previous year.
