Suzuki Motor Corporation (SMC) on Thursday said it has revised its consolidated business forecast for the current financial year by lowering net sales estimates by 10.3 per cent due to slowdown in the Indian automobile market and decline in production in Japan.
The company said it expects net sales during the current fiscal to come down to 3,500,000 million yen (about Rs 2,31,000 crore), a dip of 10.3 per cent from 3,900,000 million yen (about Rs 2,57,400 crore) forecasted earlier.
Besides, the auto maker also lowered operating income estimates to 200,000 million yen (about Rs 13,200 crore) for the fiscal, down 39.4 per cent from 330,000 million yen (about Rs 21,780 crore) projected earlier.
“The company hereby revises the consolidated business forecast due to decrease in Japan production in the course of restructuring final inspection scheme, slowdown in Indian automobile market, and exchange rate fluctuations,” SMC said in a statement.
For the last fiscal (April 1, 2018 to March 31, 2019), SMC had reported net sales of 3,871,496 million yen and operating income of 324,365 million yen.
SMC has 56.21 per cent stake in Maruti Suzuki India (MSI), the country’s largest car maker. The domestic automobile industry in India is going through a prolonged slump, forcing car makers to cut production and jobs across their manufacturing plants.
MSI reduced its production by 17.48 per cent in September, making it the eighth straight month when the car maker lowered its output.
The company produced a total of 1,32,199 units in September as against 1,60,219 units in the same month last year.