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Maruti Udyog may increase car prices in December
Wednesday, 15 October 2003, 19:30 IST
NEW DELHI: Maruti Udyog Limited, India's largest car maker, Tuesday said it may increase car prices from December to offset the impact of a strong yen and rising steel costs.
Maruti, a unit of Japanese auto giant Suzuki Motor Corp, imports about 15 percent of its components from Japan and hardening of the yen against the Indian rupee has increased production costs, said Maruti managing director Jagdish Khattar.
"The yen has become extremely strong. It is causing us concern. We may have to review the prices around December," Khattar told reporters here.
"Our steel supply contracts are coming to an end in December and we will have to renegotiate deals after that. We are working out our contracts with the suppliers from Korea, Japan and India," he added.
Khattar, however, said that company would try to minimise the impact of "external factors" on car prices by rationalising costs.
He said the strike in one of the company's key vendors that affected production in August and September had ended and normal supplies would resume soon.
Maruti had announced last month it would introduce an early retirement scheme in the current year to trim its workforce. During 2001-02, it had offered a voluntary retirement scheme to shed nearly 19 percent of its 5,646-strong workforce.
Maruti's net profit for the fiscal year ended March 31 rose 40 percent over the previous year due to aggressive cost cutting measures.
The company's net profit in fiscal 2002-03 touched 
1.46 billion, up from 1.04 billion logged in the year ended March 31, 2002.
Suzuki Motor took management control of Maruti from the Indian government in May 2002 as part of the latter's privatisation programme. The Japanese auto major holds a majority 54.2 percent stake.
The government divested its stake in Maruti, which makes 10 car models including the largest selling Maruti 800, to 25 percent from 45.8 percent through an initial public offering floated in June.
Source: IANS
1.46 billion, up from 1.04 billion logged in the year ended March 31, 2002.
Suzuki Motor took management control of Maruti from the Indian government in May 2002 as part of the latter's privatisation programme. The Japanese auto major holds a majority 54.2 percent stake.
The government divested its stake in Maruti, which makes 10 car models including the largest selling Maruti 800, to 25 percent from 45.8 percent through an initial public offering floated in June.
Source: IANS