Maruti Suzuki may see margin decline in Q3 due to volume, cost headwinds

Given a weak October so far, volumes would have to rise sharply for the company to meet its full-year forecast for 2018-19

With sales volumes disappointing at the start of the festival season, Maruti Suzuki, the country's largest passenger vehicle company, could be facing a difficult December quarter. 

This is on account of both lacklustre demand and higher input costs. The company is hopeful of a recovery closer to the Diwali season, led by rural demand. However, flooding in Kerala and higher insurance, financing and fuel costs have derailed demand. 

After flat sales growth in July and a three per cent drop in August, volumes in September rose by only 0.7 per cent, resulting in a 1.5 per cent fall in the