Maruti Suzuki India has become the greatest contributor of profits for it parent company Suzuki motor corporation. This allows Maruti to have more leverage on commercial decisions. They will also get more funds for its development plans.
During the fiscal end March 2009, Maruti's contribution to the overall profit of Suzuki was 46% . In the last year it was 30%. On the consolidated revenues of the Japanese car manufacturer, Maruti's top line is around 13%.
The MD for Maruti Suzuki, Shinzo Nakanishi told that the significance of Maruti in the group is becoming more and more important. In the last fiscal, when Suzuki's net sales saw a decline of 14% to 3.05 trillion yen, Maruti gave a result of 14% rise on net sales.
Suzuki owns 54% stake in Maruti Suzuki India, the country's largest car manufacturer. It reported a sales of nearly 8,00,000 units in the year ended March 2009. This was the highest in 25 years. This achievement during a year which was hit by severe economic recession globally, made Maruti a shining star among Suzuki's units worldwide.
A spokesman from Maruti confirmed that the largest contributor for Suzuki's global business was Maruti and gave further clarification on profit repatriation. He said that the profits made here will be kept in reserves here for expansion plans, development of new car technologies here and will not be repatriated to Japan.