Maruti India registers revenue rise after a torrid financial year

Last year the car market was suffering from a slowdown with natural disasters increasing the troubles.  Maruti Suzuki India, the small car major is going to record its first rise in revenue in three quarters after two consecutive quarters of falling profits. Apart from the troubles that the car industry was suffering from Maruti India was also struggling internally with labor issues in 2011. Maruti India recently spawn Ertiga MPV and the market is already bent towards it. Maruti Ertiga has received 10,000+ bookings in a span of five days. Maruti stocks have also seen a hike of 9.3 percent after the company rolled out Ertiga on April 12. The overall car sales in India grew by 13.4 percent in the first quarter of 2012 and the revenues are going on a high but the profits won’t go that high as the input costs have surged and the value of rupee has fallen.

Also Indian automakers import a substantial number of components and the falling price of rupee is increasing their input costs. Suzuki Motor Corp holds 54.2 percent stake in Maruti India, the company saw rise in sales in January  after a long drought of 7 months and has posted a 14.5 percent rise in revenue however the profits has slide to 14.4% only. Maruti is also going to introduce diesel engine in its star seller Maruti Alto K10 and Maruti Wagon R. Although the wait is going to be much but no doubt Maruti Wagon R diesel is going to be a hit in the Indian car market. Tata Motors sales have also surged more than 20% in this quarter as the demand for Jaguar and Land Rover vehicles is continuously increasing. The British  luxury brand accounts for more than 90% profit for Tata Motors in the last quarter.

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