Maruti Suzuki India Ltd. accounts for the largest profit of Suzuki Motor’s global business

Maruti Suzuki India Ltd. (MSIL) has become a major player in the business of Suzuki Motor Corp. MSIL is the biggest operation in terms of volume of the Japanese automaker. Because of the company’s consistent high performance MSIL has earned greater freedom in case of making business decisions. In the FY 2008-09, the share consolidated profit of Suzuki Motor Corp. yield by MSIL rose to 46% against 30% in the previous fiscal year. Overall, MSIL made up 13% of Suzuki Motor Corp.’s consolidate revenues. MSIL’s profit makes up the largest share of Suzuki Motor’s global business. Instead of taking away money from the company, the revenue will be reinvested to expand the business of the company.

In the last fiscal year, net sales of Maruti Suzuki rose 14% where Suzuki’s net sales fell 14% to 3.05 trillion yen. In FY 2008-09, MSIL sold 800,000 units, highest in the last twenty five year. At a time, when auto sales are falling every where in the world including Japan, this is an astonishing achievement for MSIL.

Shinzo Nakanishi MD, MSIL told reporters that Maruti Suzuki is gaining more importance in the business Suzuki Motor Corp. Mr. Nakanishi also said that except India, Suzuki Motor’s performance was disappointing in all the major markets including the U.S., Europe and Asia.

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