Disrupted by the COVID-19 pandemic, New launch plans to be impacted says Maruti Company.

Maruti Suzuki is a country’s largest carmaker. Due to the COVID-19 pandemic, there are nationwide lockdown and its result, their business and new launch plans will be impacted by the pandemic. But this will not disrupted the jobs or the salaries of the employees, it clear by the company.

On May 15, 2020, Maruti Chairman R C Bhargava said “We have no plans to reduce salaries or jobs”. Due to the countrywide lockdown, the company like all the automobile major, they could not supply any new vehicle to any dealerships in April and it all meant that everything was shut, like factories or retailers.

In lockdown 3.o, when some activities like shops or transports in the country were started, with some restriction by the permission of Central Government and Maruti company also wanted to start their production, so it resume their production at Manesar factory on Tuesday and also has plans to start the factory at Gurugram from next week. However, there is still no clarity to Maruti, on when the Gujarat plant, which is owned by its parent Suzuki would begin their operation. Maruti Chairman R C Bhargava said that we are waiting for when the situation become normal and sales return to normalcy, but now there is no clarity on the issue and “No one knows how the markets will behave”.

Maruti Chairman R C Bhargava also said about their company’s net profit which are declined that one-third of the company dealerships have opened so far, as lockdown restrictions started coming off from May 4. Financial year ended at March 2020, and then the company reported a 28 per cent decline in consolidated net profit to Rs. 1,322 crore, which were hit by lower sales volume and increased expenses. It had logged a net profit of Rs. 1,831 crore in January-March of 2018-2019.