Maruti Expecting Bearish Sales During Second Half of 2010

Thursday 16 September 2010, 00:00 AM by Payal Pathak

Maruti Suzuki India Limited has been so far recording highest ever sales growth since past two consecutive months. Although the sales momentum has refused to decline, nevertheless, the company expects the sales to slow down during the latter half of the year. As per the recent statement from Maruti Chief General Manager, Shashank Srivastava, the growth achieved so far will be tough to maintain and the growth figures will be moderate in second half as compared to the first half of the year.

"One of the main reasons for low growth in rest of the fiscal will be high base effect of last year. In the second half of last fiscal, the market became very strong," he stated. He also added that rising inflation is yet another cause which may eventually lead to higher interest rates making car loans to go expensive. Apart from the markets he also cited capacity constraints as a reason to lose market share. He stated that the company is not able to meet the market demand and has high waiting period on its several models.