Suzuki reports 46 percent lower profit in Q1 as sales in India dampen - Latest Technology News - Gaming & PC Tech Magazine- News969
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Suzuki reports 46 percent lower profit in Q1 as sales in India dampen

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Date: 5th August 2019

Suzuki Motor Corp reported its operating profit for the first quarter of the year, which was 46.2 percent lower. This is mostly due to the dampening sales in India, its largest market, and lower output in its domestic market as it works towards its inspection systems.

The average estimate of eight analysts polled by Refinitiv of the automaker for the operating income for the quarter ending June was 69.09 billion yen. The actual operating profit of the company was 62.7 billion yen ($592 million), missing the estimate. The profit figure was significantly low as compared with last year’s figure which was 116.5 billion yen. 

Subaru reiterated its operating profit for the year ending March 2020 as 330 billion yen. This figure is 1.7 percent greater than the operating income of the previous year.

While the company retained its forecast sales volume for the year, it did admit that it may have to reduce it considering the stricter emission limits and slow economy may pull sales. The Indian market, where about half of all cars sold are of its brand, is giving the automaker a tough time this year.

The low profit figures could harm its progress to cope with the new trends of the global auto industry. There has been increasing investments in electric, lower-emission cars and on-demand transportation services recently.

The Japanese automaker realises, and has admitted, that it cannot support the development of electric and self-driving cars. Consequently, it has negotiated with Toyota Motor Corp to get gasoline hybrid systems for its vehicles.

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