Suzuki Motor Corporation has announced the consolidated net sales of the third quarter (April 2014 to December 2014) increased by ¥67.3 billion/Rs 3,499 crore (3.2%) to ¥2,143.0 billion (Rs 111,436 crore) compared to the corresponding period of the previous fiscal year.

The Japanese domestic net sales decreased by ¥4.1 billion/Rs 213 crore (0.5%) to ¥773.8 billion (Rs 40,237 crore) year-on-year owing to the decrease in the automobile and motorcycle sales. The overseas net sales increased by ¥71.4 billion/Rs 3,712 crore (5.5%) to ¥1,369.2 billion (Rs 71,188 crore) year-on-year mainly owing to the increase in the automobile sales in India.

In the April-December 2014, Maruti Suzuki India sold a total of 853,532 units, notching a 13 percent growth year on year. On the export front, it shipped 92,171 cars, up 22.8 percent over Aril-December 2013.

In terms of the consolidated income, the operating income was at the same level as the corresponding period of the previous fiscal year at ¥135.2 billion mainly owing to the decrease in the income in Indonesia and Thailand, despite the increase in the income owing to the exchange rate and India. Although the ordinary income increased by ¥4.9 billion (3.5%) to ¥144.4 billion year-on-year mainly owing to the decrease in the foreign exchange losses, the net income decreased by ¥2.6 billion (3.1%) to ¥79.9 billion year-on-year mainly owing to the increase in the income taxes and the increase in the adjustment of minority interests in income.

In the automobile business, although Suzuki made efforts to expand its sales and strengthen its product range with new cars like the Hustler minicar and the new Alto minicar (which has achieved the best fuel efficiency among non-hybrid petrol vehicles in Japan of 37km/litre), the impact of the recoil reduction from the hike in the rate of the consumption tax in Japan, Japanese domestic net sales decreased year-on-year. Overseas net sales increased year-on-year mainly owing to the increase in India. Consequently, the net sales of the automobile business increased by ¥73.5 billion/Rs 3,822 crore (4.0%) to ¥1,917.0 billion (Rs 99,684 crore) year-on-year. The operating income decreased by ¥0.2 billion (0.1%) to ¥133.7 billion year-on-year mainly owing to the decrease in the income in Indonesia and Thailand, despite the increase in the income owing to the exchange rate and India.

In the motorcycle business, the net sales decreased by ¥12.5 billion/Rs 650 crore (6.5%) to ¥179.9 billion (Rs 9,354 crore) year-on-year mainly owing to the decrease in the sales in Asia. The operating loss of ¥4.6 billion in the corresponding period of the previous fiscal year became an operating loss of ¥5.0 billion.

As for the forecasts for the consolidated operating results, as a result of reviewing the figures such as the sales units and the exchange rates of each country based on the results of this third quarter, the overall consolidated net sales, operating income, and ordinary income are kept unchanged from the previous forecasts. As for the net income, downward revision of ¥10.0 billion has been made from the previous forecasts, keeping into consideration the impact of the reversal of deferred tax assets accompanied by the reduction of the income tax rates from the next fiscal year.

Suzuki Motor Corporation will be increasingly banking on Maruti to drive future growth. On January 28, the Suzuki Group laid the foundation stone for its all-new Gujarat plant. The Group will set up three plants at Hansalpur with a total annual capacity of 750,000 vehicles. The first plant is scheduled to start production in mid-2017. It is being set up at an investment of about Rs 3,000 crore, and will have an annual capacity of 250,000 units.  

The vehicles manufactured at these facilities will be supplied exclusively to Maruti Suzuki India and support MSIL’s objective of reaching annual sales of two million units in the medium term.