Arab Today, arab today india\s top carmaker eyes postpoll bounce as profits dive
Last Updated : GMT 19:41:39
Arab Today, arab today
Arab Today, arab today

India\'s top carmaker eyes post-poll bounce as profits dive

Arab Today, arab today

Arab Today, arab today India\'s top carmaker eyes post-poll bounce as profits dive

New Delhi - AFP

Top Indian carmaker Maruti Suzuki Friday reported a 35.5-percent drop in quarterly net profit, but said it hoped for a turnaround in the auto market once a new government takes office next month. Maruti, controlled by Japan's Suzuki Motor Corp, has been reeling from a downturn in India's once-booming car market as an economy growing at under five percent for a second straight year deters customers. Maruti reported profit for the quarter to March slid to 8.0 billion rupees ($132 million) from 12.4 billion rupees in the year-earlier period, on sales which tumbled 9.5 percent to 118 billion rupees. "We are hoping post- the election of the new government, there will be an improvement in sentiment and the car market will revive," Maruti chairman R.C. Bhargava told reporters. Voting in India's marathon general election winds up on May 12 with results due four days later. The opposition Hindu nationalist Bharatiya Janata Party is tipped to form the next government under Narendra Modi, chief minister of the prosperous western state of Gujarat, who is running on a platform of economic recovery. Analysts agreed political stability after several years of scandal-fuelled crises and policy uncertainty could be key to reviving car-buying sentiment. "If you get a stable government at the centre, it could do a lot to boost sentiment," Deepesh Rathore, director of New Delhi-based Emerging Markets Automotive Advisors, told AFP. But he added any recovery would not be dramatic, forecasting overall growth for the year would be broadly flat. India's car sales have fallen for two years in a row after posting double-digit growth in earlier years. Maruti said lower sales, higher promotional expenses and a dealers' compensation package had "impacted the company's bottom line" during the fourth financial quarter. The earnings undershot market consensus forecasts of a 9.5-billion-rupee profit. But Maruti added the year-earlier number was swelled by a one-off gain, making the decline seem larger. Maruti, which sold four out of every ten new cars in India in the last financial year, saw its shares slide by over three percent before they pared losses to end down 1.3 percent at 1,955 rupees. The car company said forecasts of a below-average monsoon this year could undermine hopes for economic recovery for India, where over half of all farmers depend on rain for irrigation. India's tough economic times are testing the nerves of global giants such as General Motors, Ford and Volkswagen which have spent billions of dollars on new plants in India to tap into the under-penetrated market. They are betting the nation's vast population, rapidly urbanising middle class and low car ownership will turn it into the world's biggest car market after China and the United States by 2020, as forecast by many analysts. "The customers are coming into the showroom wanting to buy, maybe not today but that day will come," said senior Maruti sales executive Mayank Pareek.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india\s top carmaker eyes postpoll bounce as profits dive Arab Today, arab today india\s top carmaker eyes postpoll bounce as profits dive

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Haifa Wahby bets on her new drama show

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 22:19 2017 Friday ,24 March

Reveals reasons of hepatitis in Algeria

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday