Millennium Post

Maruti cuts growth forecast for FY13

Country's largest car maker Maruti Suzuki India on Tuesday lowered sales growth projection to 3-5 per cent for this financial year, although it is banking on the newly launched Alto 800 to give a boost.

The company introduced the new version of its best selling small car Alto in both petrol and CNG options, offered at introductory prices ranging between Rs 2.44 lakh and Rs 3.56 lakh [ex-showroom, Delhi].

'We are expecting to grow 3-5 per cent this fiscal. High petrol prices are impacting our sales badly as most of our best selling models are in this mode,' Maruti Suzuki India [MSI] managing director and CEO Shinzo Nakanishi told reporters.

Although diesel prices have been increased now, it will take some time to bring back customers to petrol cars again, he added.

The company had earlier projected a growth of 10 per cent during 2012-13.

In 2011-12, MSI's total sales declined by 10.80 per cent to 11,33,695 units from 12,71,005 units in 2010-11. Domestic sales decreased by 11.16 per cent to 10,06,316 from 11,32,739 units in the previous fiscal. 'During the first six months, our total sales remained flat. In the second half of this fiscal, we are expecting market to improve,' Nakanishi said.

During April-September period, MSI witnessed 1.42 per cent fall in its sales at 5,26,272 units from 5,33,833 units in the year-ago period.

Nakanishi said the company's exports will also fall during this fiscal. 'All over the world, the situation is very tough. We will not reach our last fiscal's sales numbers in export markets,' he said. MSI is likely to sell 10,000 units less than 1.27 lakh units that were exported in 2011-12, he added.

The company, however, is hoping to clock good numbers during the upcoming festive season, mainly on the back of good demand for its new Alto 800.
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