Despite new Maruti Alto 800 small car buzz Maruti Suzuki reduces growth forecasts by 50%

Sales of Maruti Suzuki India Limited have not been upto expectations making it mandatory for the company to reduce their growth forecasts for the financial year 2013 from 10% to just 5%. Besides launch of the new Alto 800 which is expected to revive sales along with the upcoming festive season, the company is also looking to expand their diesel capacity. Capacity at the Gurgaon plant may be augmented while there are rumors of a new engine plant coming up in Gujarat.

Excessive demand is being felt towards diesel vehicles which have risen by 58% this year as against 47% in the last year and 36% in the year prior. This share is expected to reach over 60% by December 2012 and hence the decisions in this regard being taken by the company.

Shares of MSIL also slipped by 1% on opening trade on Friday following reports that the company had reduced their growth forecasts for the coming year by 50%. As trading opened at 9.30 am, MSIL was trading at over 1% loss while trading continued to 0.2% lower with share prices varying between Rs.1,355 and Rs.1,369.20.