Maruti steps on the gas as parent firm cuts costs

DALAL STREET SPIKES

Maruti Suzuki rose 2.65 per cent on Wednesday to close at Rs 688.75 on reports that its Japanese parent, Suzuki Motor Corporation, intends to cut production costs of each car by Rs 20,000 to combat a slowdown in demand.

According the cost-reduction plan, Suzuki will work with its vendors to reduce the weight of the car by about 20 kg, which will result in a saving of above Rs 20,000 for each car. The stock touched an intraday high of of Rs 698.90 and a low of Rs 628, with 753,334 shares changing hands (about 4.7 times its two-week average).