Maruti Suzuki skids after announcing recall of some models

Maruti Suzuki India fell 1.51% to Rs 6899.85 after the car major announced a recall of certain car models that were manufactured between 1 January 2019 and 21 November 2019.

Maruti Suzuki India on Friday, 6 December 2019, announced a recall of certain petrol Smart Hybrid (SHVS) variants of Ciaz, Ertiga and XL6 vehicles manufactured between 1st January 2019 to 21st November 2019. Recall campaigns are undertaken globally to rectify faults that may be potential safety defects. The company will inspect 63,493 vehicles of petrol SHVS of Ciaz, Ertiga and XL6 for a possible issue with the Motor Generator Unit (MGU). A possible defect may have occurred in the MGU during manufacturing by an overseas global part supplier.

In the interest of its customers, Maruti Suzuki has decided to proactively recall the vehicles for inspection and those found OK will be released immediately. Vehicles requiring replacement of faulty part will be retained for part replacement free of cost. Keeping in view customer convenience, Maruti Suzuki dealers may make alternate mobility arrangements in such cases, if required.

Starting 6 December 2019, owners of the suspected vehicles under this recall campaign will be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part.

Meanwhile, the S&P BSE Sensex was down 332 points or 0.82% to 40447.23.

On the BSE, 27,255 shares were traded in the counter so far compared with average daily volumes of 42,547 shares in the past two weeks. The stock hit a high of Rs 7050 and a low of Rs 6868 so far during the day.

The stock hit a 52-week high of Rs 7929 on 19 Dec 2018. The stock hit a 52-week low of Rs 5447 on 31 Jul 2019.

Maruti Suzuki India's consolidated net profit fell 39% to Rs 1,390.60 crore on 25.2% decline in net sales to Rs 16,123.20 crore in Q2 September 2019 over Q2 September 2018.

Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

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