Maruti Suzuki's profit has seen a significant decline as the sales have fallen by 22 percent in the first half of the current fiscal, said RC Bhargava, chairman of the company, after the auto major announced its September quarter results.
The company reported a weak July-September quarter with the standalone revenue from operations declining 24 percent year-on-year (YoY) to Rs 16,985 crore as against Rs 22,433 crore in the corresponding quarter last year. Net profit for the quarter fell 39 percent YoY to Rs 1,358 crore as compared to Rs 2,240 crore last year.
"The main reason why this has been happening is the cost of buying a car for the customer has increased very substantially this year. It has been because of safety regulations and emission regulations both being implemented at the same time," said Bhargava, adding "nine states increased the road taxes and they have a substantial impact on the cost of the customer".
"Rate of interest has gone up from last year, it has only started coming down after the Finance Minister intervened and put some pressure on the banks," he added.