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<ul><li>Production cuts at Maruti worsen the impact of slowing car sales in India. </li><li>Suzuki shares fell over 4.3% in Japan on Monday, and another 3.3% a day later, due to the threat to its earnings after the slump in India. </li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes. </li></ul>Thousands of miles away from India, the share price of Suzuki is taking the beating for Indians shying away from car showrooms. The stock lost over 4.3% on Monday, and 3.3% on Tuesday, together worth nearly $2 billion in market capitalisation due to the falling demand for cars in general in India, which is eating into the profits of its Indian partner Maruti. India’s largest car maker <keyword id="44883" type="DOMAIN" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> has cut production for the fifth consecutive month due to lack of demand. Overall output in India will be down 15% while that of small cars will down to half in July compared to a month earlier, Maruti said. Maruti’s shares fell 4.8%, shedding ₹7,000 crore in market value on Monday. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report. This will be a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. All Indian car makers put together saw a decline in sales of 18.8% in June, the <a href="https://www.businessinsider.in/june-monthly-car-sales-data-points-to-a-severe-slowdown-in-india/articleshow/69985355.cms">seventh straight monthly fall in car sales</a>, and the worst in 18 years, as per the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. 
 
 
 
 
 
 
 
 
 
 
 
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 The current slowdown in car sales is largely attributed to a broader economic slowdown, lack of jobs, and a decline in consumer sentiment over the last couple of years, starting from the demonetisation in November 2016 followed by the introduction of the Goods and Services Tax (GST) soon after. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. Double whammy However, the declining sales have not led to a fall in its price. The price of cars is on a rise due to the new emission norms set to kickstart in India from April 2020. The new mandatory BS-VI (Bharat Stage-VI) emission norms are set to make the <keyword id="421590" type="PERSON" weightage="20" keywordseo="diesel-engine">diesel engine</keyword> operated vehicles, especially cars, more expensive. “The rollout of new emissions standards (BS6) and Suzuki's competitive edge (mainly in gasoline cars), we think conditions are currently at their worst amid a bleak short-term earnings outlook, and continue to believe that now is the time to consider medium-term investment,” JPMorgan said. SEE ALSO: <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

Suzuki just lost nearly $2 billion in 2 days because of what’s happening in India

<ul><li>The Japanese car making giant has been hit by severe slowdown in car sales in India.</li><li>Suzuki shares have lost over a sixth of its share value this year due to the fear of depleting earnings.</li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes.</li></ul>India’s largest car maker Maruti Suzuki has cut production for eight months in a row due to lack of buyers. The depleting earnings for Maruti is affecting its Japanese parent Suzuki, who just announced a nearly 40% cut in its estimate for operating income this year. The shares of Maruti fell over 2% immediately after the announcement from Suzuki. "The Company hereby revises the consolidated business forecast due to decrease in Japan production in the course of restructuring final inspection scheme, slowdown in Indian automobile market, and exchange rate fluctuations," <a href="https://www.release.tdnet.info/inbs/ek/140120191010406987.pdf" data-type="tilCustomLink" target="_blank">Suzuki said in a filing</a> with the stock exchanges in Tokyo. <table style="width: 188pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:15.0pt;width:101pt">March 2020 Forecast</td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 87pt;">Cut</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net sales</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">10.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Operating income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">39.40%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Ordinary income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">35.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net income </td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">30%</td> </tr></tbody></table> Brokerage house CLSA has maintained a 'buy' rating on Maruti Suzuki with a target price of ₹7,950 over the next 12 months hoping that the new models will lure some buyers who are still on the fence. The slowdown in car sales is not unique to Maruti. Car sales in India fell 20.5% in September compared to a year earlier. Aside from the economic slump in India, car buyers have shied away from showrooms expecting duty cuts and lower prices as well as fearing a loss of value for their new cars when the new emission norms kick in next year. This has been a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report in June. The steady decline in car sales in India has been the worst in 18 years, according to the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mahindra-suvs-and-pick-up-trucks-are-a-rage-in-south-africa-even-in-a-shrinking-market/articleshow/71518308.cms" data-type="tilCustomLink" target="_blank">Mahindra SUVs and pick-up trucks are a rage in South Africa even in a shrinking market</a> <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

<ul><li>India's largest carmaker saw a 1.1% fall in monthly car sales in July compared to an estimated 13% fall, according to the broking firm Nirmal Bang. </li><li><keyword id="401927" type="PERSON" weightage="20" keywordseo="July-exports">July exports</keyword> fell 27% to 6,757 units compared to the same period last year.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/" data-type="tilCustomLink" target="_blank">Business Insider</a>. </li></ul>Automobile major <keyword id="44883" type="DOMAIN" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> on Saturday reported a marginal year-on-year decline of 1.1 per cent in total sales during July 2020. Accordingly, the company's total off-take declined to 108,064 units from 109,264 units sold during July 2019. The total sales include 100,000 units off-take in the <keyword id="6382118" type="UNKNOWN" weightage="20" keywordseo="domestic-market">domestic market</keyword> and 1,307 units to other OEM. As per a company statement, exports during the period under review fell to 6,757 units from 9,258 units being shipped out in July 2019. "Maruti Suzuki India Limited posted total sales of 108,064 units in July 2020. This is a growth of 88.2 per cent over June 2020 and a fall of 1.1 per cent over July 2019," "This includes domestic sales of 100,000 units and 1,307 units for other OEMs in the domestic market. In addition, the company exported 6,757 units in July 2020." SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-india-first-quarterly-results-and-share-price-chart/articleshow/77238578.cms" data-type="tilCustomLink" target="_blank">Maruti records its first quarterly loss in at least a decade - lockdown pain drags revenues lower by 79%</a> <a href="https://www.businessinsider.in/business/auto/news/maruti-mahindra-and-mahindra-hero-moto-bajaj-auto-and-other-july-auto-sales-data-estimate/articleshow/77275348.cms" data-type="tilCustomLink" target="_blank">There may be little solace for Maruti, M&amp;M, Hero Moto, Bajaj Auto and others in the July auto sales data</a>

Maruti's July sales data sparks hope for other carmakers

New Delhi, May 7 () For over 34,000 employees of the country's largest carmaker Maruti Suzuki India (MSI), an in-house developed Wellness Mitra App has been acting as the guardian angel to assist them over the past two weeks as coronavirus pandemic rages on.The app that complements the Aarogya Setu App has been made mandatory for all employees across the value chain, requiring them to update their health status, including close family members, on the app everyday, according to the company.It has been developed to ensure safety and monitor employees' health on a real time basis, while a 'COVID-19 Task Force' has also been set up to ensure that all health and safety advisories are followed by the employees, it added.Commenting on the steps taken by the company to ensure safety of its employees, Maruti Suzuki India Member Executive Board (HR, IT and Safety) Rajesh Uppal said, "We are passing through an unprecedented global health crisis. Employees' safety is our top priority and we have developed the Wellness Mitra application that complements the Aarogya Setu App".The Aarogya Setu app helps in contact tracing and sends alert about COVID-19 positive cases in the vicinity, he said, adding "with the use of technology, we are monitoring health of all our employees on a real time basis"."The Wellness Mitra App has been developed in-house and it helps maintain the health log sheet of employees across all our locations in the country. It not just helps us to monitor well-being of employees but they can also seek help in case of any emergency through the app," Uppal further said.As the company gears up to resume operations both at its Manesar plant and in offices where relaxations are applicable, monitoring through the app. MSI is allowing employees who report good health for at least 14 consecutive days to come to work.Among the precautions, every MSI employees are required to record body temperature on the app every day and at the same time they can also can seek emergency medical support if required with help promptly extended by the company's rapid action task force.Questions such as if an employee has symptoms of fever, cough, difficulty in breathing, loss of smell, loss of taste, diarrhoea are asked in the Wellness Mitra App and details are closely monitored by reporting managers, across all locations/states in India.It also checks if there are any COVID-19 positive cases in employees' vicinity, while also periodically broadcasting the government guidelines of dos and don'ts.In addition, the company said it has also set up a 24x7 help desk to address any concerns and questions of employees.Maruti Suzuki India said it has also developed a similar app for its dealer and vendor partners to cover entire value chain. RKL BAL

COVID-19: Maruti Suzuki leans on Wellness Mitra App for employees' safety

With emission and fuel efficiency norms getting tighter, <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>'s largest car maker <keyword id="6363602" type="General" weightage="50" keywordseo="maruti-suzuki-india-ltd" source="Orion">Maruti Suzuki India Ltd</keyword> expects to have only hybrid (mild and strong), flexible fuel, compressed natural gas (CNG), electric, bio-fuel powered vehicles, said a senior official. As a result, pure petrol powered cars may not figure in the company's portfolio of cars in a decade. Already the company has stopped rolling out diesel powered cars. <keyword id="44883" type="General" weightage="100" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> is also focusing on growing its sport utility vehicle portfolio and the market share in that segment. "Pure petrol powered cars may not be there in the company's product line up, say in 10 years time as the emission and fuel efficiency norms are getting tighter," Shashank Srivastava, Senior Executive Director, Marketing &amp; Sales told IANS. He said the new Corporate Average Fuel Economy or Efficiency (CAFA per cent) norms may come into place in 2032. Unlike the norms for the tailpipe emissions, the CAFA% norms are for a carmaker's entire portfolio. More the fuel efficiency of a car, the less the tailpipe emissions. As there is a limit on achieving higher fuel efficiency with the current technology, companies are looking at alternatives. While electric vehicles are one option, it is not viable for the entire automotive segment in India in the short term owing to issues like availability of charging infrastructure, vehicle price and its payback period and others. The other option is rolling out vehicles powered by mixed fuel -- ethanol plus petrol, hybrid, flexible fuel, CNG and the like. Be that as it may, Maruti Suzuki is gearing up for unveiling its first midsize petrol-electric hybrid SUV on July 20. The vehicle will be rolled out in two variants-mild and strong. The car will be produced at the <keyword id="6374528" type="General" weightage="50" keywordseo="toyota" source="Orion">Toyota</keyword> <keyword id="298641" type="General" weightage="50" keywordseo="kirloskar-motor-pvt-ltd" source="Orion">Kirloskar Motor Pvt Ltd</keyword>'s plant in Karnataka's Bidadi. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/indian-startups-have-already-laid-off-a-little-over-11000-people-in-the-last-six-months/articleshow/92541036.cms">11,000 and counting — that’s how bad startup job losses are after Ola, Byju’s &amp; 22 others cut costs</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-shehnai-the-musical-instrument-made-famous-by-ustad-bismillah-khan-seeks-a-gi-tag/articleshow/92692131.cms">India's Shehnai, the musical instrument made famous by Ustad Bismillah Khan, seeks a GI tag</a>

Maruti Suzuki to discontinue petrol-powered cars in 10 years

The country's largest carmaker <keyword id="44883" type="General" weightage="100" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> on Wednesday reported a 12 per cent increase in total sales at 1,72,535 units in January. The company had sold a total of 1,54,379 units in the year-ago period, Maruti Suzuki India Ltd (MSIL) said in a statement. Total domestic passenger vehicle sales were at 1,55,142 units as compared to 1,36,442 units in the corresponding period the previous year, a growth of 14 per cent, it added. Maruti Suzuki India Senior Executive Officer Marketing &amp; Sales Shashank Srivastava said the industry began with a low network stock because of high retails in December. "Therefore, the depleted inventory resulted in slightly muted retails, taking up the network stock to 1.84 lakh units. On the demand side, the enquiries and bookings have been steady despite price hikes done by several OEMs," he noted. Constraints of production still continue due to the semiconductor supply situation, which resulted in some loss in wholesales as well as retail, Srivastava said. This issue is expected to continue for a few more months, he added. Sales of mini segment cars, comprising <keyword id="6412620" type="General" weightage="50" keywordseo="alto" source="Orion">Alto</keyword> and S-Presso, grew to 25,446 units as against 18,634 units last month. Sales of compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR, rose to 73,840 units as compared to 71,472 units in the year-ago month. Utility vehicles, consisting of Brezza, Ertiga, S-Cross and XL6, clocked sales of 35,353 units last month as compared to 26,624 units earlier. Sales of <keyword id="14869473" type="General" weightage="50" keywordseo="van-eeco" source="Orion">van Eeco</keyword> were at 11,709 units in January as against 10,528 units the previous year, while that of light commercial vehicle <keyword id="2702763" type="General" weightage="50" keywordseo="super-carry" source="Orion">Super Carry</keyword> stood at 4,019 units as against 3,537 units earlier. MSI said its exports last month stood at 17,393 units as compared to 17,937 units in the same month last year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/mukesh-ambani-overtakes-gautam-adani-as-the-richest-indian/articleshow/97519749.cms">Mukesh Ambani overtakes Gautam Adani as the richest Indian on the Forbes Real-Time Billionaires List</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/insurance-policies-where-premium-is-above-5l-no-more-tax-exempt/articleshow/97521396.cms">Insurance policies where premium is above ₹5L no more tax exempt</a>

Maruti Suzuki sales rise 12% in January

(IANS) <ul><li>Ford Motor Co.’s India operations reported a profit of ₹5.26 billion after nearly a decade of consecutive losses. </li><li>The company last announced its profit worth ₹190 million in the year 2009. </li><li>The profits are reported to be driven from domestic sales and exports.</li></ul>Having been in India for 20 years, Ford Motor Co reported profits in India for the first time in a decade <a href="https://www.reuters.com/article/us-ford-motor-india-strategy-focus/ford-goes-local-in-india-aims-for-bigger-slice-of-competitive-market-idUSKCN1NB07P">according to</a> Reuters. For the fiscal year that ended on March 31, the company made a profit of ₹5.26 billion ($72 million). The company’s profits from domestic sales and exports resulting in increase in the <a href="https://economictimes.indiatimes.com/industry/auto/auto-news/fords-india-operations-close-to-posting-profit-this-fiscal/articleshow/65347182.cms">profit margin</a> to over 20% for the third consecutive year. Ever since Ford Motor Co started functioning in India, domestic operations have crossed ₹72.4 billion turnover for the first time, with exports reported to be 2.4 times the local sales. The company’s actually be making profits in the Indian market since 2014, but net profits — that’s actual profits after taking care of expenses — only came into the picture for FY18. However, <keyword id="106216" type="CITY" weightage="20" keywordseo="Ford-India">Ford India</keyword> executives refused to comment on the estimate for the FY18. The company reported losses for years at a stretch, and reported an aggregate loss of ₹34.8 billion altogether for the FY17. Earlier, Ford India announced its profit in the 2009 amounting to ₹190 million. Since then, due to mounting losses and raising doubts, the company launched an initiative to correct the fundamental cost, capacity utilization and the brand. The Emerging Market Operation Model was proposed for execution in the year 2016 focusing on different aspects of business, from administration to marketing and distribution, to cut down the unnecessary cost in order to compete with other giants including <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> and <keyword id="596" type="CITY" weightage="20" keywordseo="Hyundai">Hyundai</keyword>.

You Searched For "maruti losses in india" and got 7 results

Suzuki just lost nearly $2 billion in 2 days because of what’s happening in India

BI India Bureau

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

Sriram Iyer

Maruti's July sales data sparks hope for other carmakers

IANS

COVID-19: Maruti Suzuki leans on Wellness Mitra App for employees' safety

PTI

Maruti Suzuki to discontinue petrol-powered cars in 10 years

IANS

Maruti Suzuki sales rise 12% in January

PTI

Ford India finally made a profit of ₹5.26 billion — For the first time in nearly a decade

BI India Bureau

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