Maruti Suzuki, the Indian subsidy of Suzuki is known for its fuel-efficient and affordable cars. COVID has impacted the automotive sector adversely and its ill-effects are starting to emerge out from quite a few places. Find below in detail about Maruti Suzuki Quarterly loss.
How much is the loss?
Maruti Suzuki’s official reports suggest a net loss of Rs.249.4 crore in the first quarter of 2020 ending June. This quarter contains revenue from March, April, May and June. The company feels operating costs and COVID- related challenges are the main culprits of this issue.
What does Maruti have to say?
According to our reports, Maruti Suzuki said to its investors, “Operations and financial results for the quarter ended June 2020 have been adversely impacted by the outbreak of Covid-19 pandemic and the consequent lockdown announced by the Government of India due to which the operations were suspended for part of the quarter and gradually resumed with requisite precautions. The results for the quarter are, therefore, not comparable with those for the previous quarters.”
Maruti Suzuki also added that is has changed some of its major priorities in wake of the coronavirus pandemic. They added, “The company’s first priority was the health, safety and well-being of all employees and associates across the value chain including its customers. Hence with carefully designed safety protocols, which went far beyond compliance levels, the production in the whole Quarter was equivalent to just about two weeks’ of regular working.”
How much was the sales?
Maruti Suzuki reported a total sales of Rs.4, 106.5 crore which according to them is a 79.2% fall compared to the last year’s same quarter. Analysts had predicted a more adverse effect but Maruti was able to perform a little better than their expectation.
Maruti Suzuki managed to sell just 76,599 cars in this quarter. The same quarter last year sold 4 lakh Maruti vehicle before the COVID pandemic. You can judge the impact of this COVID on a big brand like Maruti Suzuki.
Has it happened before?
No, it is the first time Maruti Suzuki has reported a quarterly loss in 2020 since 2003. Both Nissan and Mitsubishi too may report heavy losses. The unlock phase in India has given a bump in the dull situation but still there is a long way to go!