Maruti Suzuki slips after announcing vehicle recall

Maruti Suzuki India fell 0.61% to Rs 7,468.05 at 11:55 IST on BSE after the company announced to proactively and voluntarily undertake a recall campaign for certain Super Carry vehicles.

The announcement was made during trading hours today, 26 December 2018.

Meanwhile, the S&P BSE Sensex was down 314.32 points, or 0.89% to 35,155.83

On the BSE, 19,000 shares were traded in the counter so far compared with average daily volumes of 61,000 shares in the past two weeks. The stock had hit a high of Rs 7,512 and a low of Rs 7,406 so far during the day.

With customer safety as its top priority, Maruti Suzuki India today announced to proactively and voluntarily undertake a recall campaign for certain Super Carry vehicles. The company will inspect a possible defect in fuel filter of 5900 Super Carry vehicles manufactured between 26 April 2018 and 1 August 2018. This also include vehicles in which fuel filter has been replaced in field during this period.

Starting 26 December 2018 owners of the suspected vehicles will be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part free of cost. Recall campaigns are undertaken globally to rectify faults that may be potential safety defects.

Maruti Suzuki India's net profit fell 9.8% to Rs 2240.40 crore on 0.5% increase in net sales to Rs 21551.90 crore in Q2 September 2018 over Q2 September 2017.

Maruti Suzuki India is India's biggest car maker in terms of market share. Japanese parent Suzuki Motor Corporation currently holds 56.206% stake in Maruti Suzuki India (as per the shareholding pattern as on 30 September 2018).

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