The financial statements for the fiscal year 2011-12 of the country’s leader in passenger car vehicles, Maruti Suzuki India have revealed a decline in the company’s exports to the tune of 7.9 percent. The situation at their international target markets of Latin America, Middle East, Europe and South-East Asian countries is not presently conducive for raising the company’s stake.
The disclosure made by the financial reports showcased that the total sales of the company witnessed a fall of 10.8 percent from around 12,71,005 units in the fiscal year 2010-11 to 11,33,695 units in the previous fiscal.
Maruti Suzuki is intuiting that the exports may either remain constant or may decline owing to the non-improvement in the overseas market performance taking the overall sales growth rate in the current fiscal up to a maximum of 10 percent, the majority contribution being expected from sales of diesel powered cars.
Mr. R. C Bhargava, the Chairman of Maruti Suzuki India commented on the company’s future expectations saying, "We are expecting 1.5 lakhs more diesel car sales while the sales of petrol will be down by 50,000 units in the entire year. So, overall, it is likely to be a gain of 1 lakhs units."
The automaker believes that the biggest challenge for this fiscal year would arise in the form of the unstable fuel prices and has said that the growth of the automobile sector would highly be determined by the relative fuel rates.
The short term plans of the company includes catering the surging demands for diesel cars and strategies have been lined up to establish diesel engine production plant with an investment of Rs 1,700 crore by 2014 at its Gurgaon facility.
