India’s largest car manufacturer Maruti Suzuki expects recovery in its profitability in the June quarter. The company anticipates car sales to grow up to 5 percent in the current fiscal year.
Recently, the company has witnessed an increase in demand for its car models in rural areas. And in order to support the rural demand, it plans to hire more people in its sales and marketing division this year. The company would induct 1000 dealer sales executives in over 680 outlets across the country.
The Managing Director and Chief Executive Officer Mr. Shinzo Nakanishi said, "Last year, our profitability was not satisfactory; some recovery will be shown in the June quarter.”
He further added that the lower commodity prices will further help the company to get back the profit. The reduced lending rates are attracting the buyers to coming back to the showrooms. The export is likely to cross 100,000 units mark in this fiscal year compared to 70,000 cars last year. The company exports four models - the A Star, Alto, Maruti 800 and the Zen Estilo. Moreover, sales are expected to rise dramatically with the launch of premium small car, the Maruti Suzuki Ritz.
Maruti Suzuki has reported its fifth consecutive month of growth in April. The company has reported a growth of 11 percent on an average in these five months.