Maruti Suzuki rises as Gujarat plant achieves full capacity

Maruti Suzuki India rose 1.51% to Rs 7,057 after the company said that Suzuki Motor Gujarat (SMG) has completed construction of its plant No. 3 at Hansalpur, Gujarat.

SMG is now starting preparations to commence vehicle manufacturing (plant No 3) from April 2021 onwards. Production volume from the plant will depend upon business conditions and market demand. SMG is 100% owned by the Japanese parent, and functions as a supplier of finished vehicles to Maruti Suzuki India.

In a separate notification on Thursday, Maruti Suzuki announced to voluntarily undertake a recall for Eeco vehicles manufactured between 4 November 2019 and 25 February 2020, and few Eeco vehicles in which headlamp has been replaced in the field. The company will inspect 40,453 units of Eeco for a possible issue of standard symbol missing on the head lamp. Any action, if required, shall be undertaken free of cost. Owners of the suspected vehicles under this recall campaign will be contacted by Maruti Suzuki authorized dealers in due course of time.

 

Further, the auto major's Japanese parent, Suzuki Motor Corporation, announced financial results for April to September 2020. Its consolidated net sales for April to September 2020 decreased by 485.2 billion yen (27.6%) to 1,270.2 billion yen, and operating income decreased by 43.7 billion yen (36.8%) to 74.9 billion yen year-on-year. The decreased net sales and income for April-June period could not be covered with recovery of sales in India and Japan, and efforts to decrease expenses for July-September period. Ordinary income decreased by 43.3 billion yen (31.1%) to 96.2 billion yen, and net income attributable to owners of the parent decreased by 25 billion yen (31.5%) to 54.3 billion yen year-on-year.

Looking ahead for fiscal year, Suzuki Motor Corp expects attributable net income to be down 18% from last year to 110 billion yen, operating income down 25.6% to 160 billion yen and net sales down 14% to 3 trillion yen.

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

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