Suzuki expects annual profit to shrink by a quarter as India sales slum
Suzuki Motor Corp on Thursday forecast operating profit to fall by a quarter to 160 billion yen ($1.5 billion) in the year to March as sales, including in its key Indian market, shrink amid the coronavirus pandemic.
That prediction was more than an average estimate for a 124.3 billion yen compiled from 14 analysts polled by Refinitiv.
Suzuki's Indian car sales in the first half of the year fell 36% to 432,000 vehicles, and dipped in other markets, including Japan, Indonesia and Europe as people stay away from dealerships.
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"We don't know what will happen with the coronavirus in India or what measures the government will implement, so that makes the market difficult to predict," Suzuki's president, Toshihiro Suzuki said in a conference call.
India accounts for just over half of Suzuki's global car sales. Through its majority stake in Maruti Suzuki India Ltd , the company accounts for roughly one in every two cars sold in the country.
Last business year, Maruti Suzuki paid Suzuki 38.2 billion rupees in royalties, or about 5% of its revenue, according to its annual report
For the full business year, the Japanese automaker expects to sell 2.38 million cars worldwide, 16.6% fewer than the previous twelve months.
The forecast came as Suzuki posted a 73.6 billion yen operating profit in the three months ended Sept. 30 compared with a profit of 55.9 billion yen a year earlier, according to Reuters' calculations.
Japan's fourth-largest automaker had declined to give a full year forecast when it reported it first-quarter results.