Maruti Suzuki, India's top car maker, beat estimates with an 18 per cent rise in June-quarter profit, helped by higher other income, even as yet another rate hike by the central bank made the sector's outlook murkier.
Car makers in the country are set to see a sharp drop in demand amid surging interest rates and fuel prices in the world's second-fastest growing auto market after China.
Indian car sales, which grew at a breakneck 30 per cent in the fiscal year that ended in April, are now expected to grow by just 10 to 12 per cent this fiscal year, down from an earlier forecast of 16 to 18 per cent, an industry group has said.
The demand outlook has weakened further after the central bank stunned investors by raising interest rates by 50 basis points on Tuesday, showing unexpected resolve in fighting persistently high inflation.
Source : New Age
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