Maruti Q2 Net Plunged 37% On Loan Rates

Vehicle sales volume of Maruti declined by 1 percent amid fastest inflation rate and seven-year high interest rates. Maruti shares on the BSE dropped 12 percent to Rs 522.35 level, most in last two months. The stock has taken a heavy beating and has already dropped around 47 percent in this year.

The overall environment is working against the auto industry and it is pretty tough to manage the sentiments of customers following the fall in the stock markets. Higher auto loan rates are badly hurting the demand of cars in India. Overall car sales market grew with just 5.3 percent to 600,385 cars in the last six months.

The sales volume of the company of models like WagonR, Swift, Alto and Omni van plunged in this quarter from July to September to 1,89,451 from 1,91,325 cars. The expenses on rubber, steel and other essential raw materials took a sharp jump to 35.8 billion rupees by rising 8.2 percent.