Maruti Suzuki has seen a sharp fall in sales in the past few months, mainly due to the shortage of diesel engines after the labour strike at the plant. The auto major is trying to combat the present situation. The production at Maruti India’s manufacturing unit is reaching near normalcy of late. The diesel engine supply from its manufacturing units stands at 20,000 units a month. With all the units at full swing production, the total output is expected to reach 25,000 units a month by January 2012. Moreover, the new Maruti Swift launched in August has successfully garnered the bookings of over one lakh units for the auto major.
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The November sales report has been particularly bad for Maruti Suzuki. As much as 18.5% decrease in sales has been observed from the corresponding time last year. Moreover, the country’s leading car manufacturer had done particularly well last fiscal (2010-2011) with 72% sales from its petrol line-up. But the market conditions have changed since then, there have been ample petrol price revisions. The gap between the petrol and the diesel price now stands around Rs 25. Furthermore, the auto major lost 0.7% at stock exchange on its shares at Rs 962 per share. This was on November 18th to mark an all-time low in the past one year.
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The company may incraese its car prices by early next year. The rupee exchange value has suffered many fluctuations recently. The rupee has depreciated as much as 17% since August this year. The input costs on the other hand are on a rise. The prices of the steel and the other materials have increased drastically contributing to higher input costs. This gives all the more reason for the auto major to implement a hike on the Maruti models during next year.
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