Maruti Suzuki turns volatile after December production figures

Maruti Suzuki India during market hours today, 8 January 2020, announced that its total production rose 7.88% to 1.15 lakh units in December 2019 from 1.07 lakh units in December 2018.

Sequentially, production declined 18.25% in December 2019 from 1.41 lakh units in November 2019.

The company witnessed reduced output for nine straight months from February to October 2019 due to lower demand before raising output in November 2019.

The car major reported 11.5% decline in total auto sales to 1.33 lakh units in December 2019 compared with 1.50 lakh units in November 2018. Total sales, however, rose 3.9% last month compared with 1.28 lakh units in December 2018.

The firm hiked prices across various models from January 2020. The car major said that the cost of vehicles has been impacted adversely due to increase in various input costs. This price increase shall vary for different models.

Shares of Maruti Suzuki were trading 0.99% lower at Rs 7,004. The stock trades above its 100 days simple moving average placed at 6856.59 while below its 50 days simple moving average placed at 7216.76. These levels will act as support and resistance in near term.

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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