Shares of Maruti Suzuki fell more than 3 per cent- biggest intraday loss in over four weeks after the company said it has increased the prices across all variants of its top-selling car Dzire. The price increase may be in view of the general slowdown in demand. Currently, the shares of Maruti Suzuki are trading at 6464.95 per share, down 172.25 points from the previous close. “Dzire is now compliant with “AIS-145 Safety Norms” (both Petrol and Diesel). Dzire Petrol is also now BS-VI compliant. This will result in the price increase in all variants of Dzire. Depending on features introduced across variants, the ex-showroom price in Delhi and NCR region shall vary from Rs. 5,82,613/- to Rs. 9,57,622/-,” Maruti had said yesterday.
There was a 20 per cent fall in auto sales in the May month. The auto companies have also been pushing for tax cuts on some input materials, but considering the fall in auto sales, the government may not grant tax rebate as that may adversely impact the revenue collection of the government. Maruti and other auto companies along with two-wheeler manufacturer Hero MotoCorp have cut production as inventories are lying unsold due to muted demand.
Maruti Suzuki reported a 22 per cent decline in its May sales in June. The company sold a total of 134,641 units car in May 2019 as compared to 172,512 units sold in the same period of last year, according to the BSE filing. In April, the company had reported a drop of 19 per cent in sales to 133,704 units as compared with 164,978 units in April 2018. The export sales also saw a dip of 2.4 per cent to 9,089 units as against 9,312 units in the previous year. The domestic sales plunged 23.1 per cent to 1,25,552 units as against 1,63,200 units in May 2018.
Shares of Hero MotoCorp are trading marginally higher at Rs 2,681.25, up 0.69 per cent from the last close. Tata Motors and Bajaj Auto are also trading in the green on BSE.
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