India’s largest passenger vehicle maker Maruti Suzuki (India) has announced that the approval for the supply of the Vitara Brezza to Toyota has been given and will start shortly.
Earlier, Maruti Suzuki-Toyota joined hands to make Toyota Glanza. This is essentially a Maruti Suzuki Baleno rebadged as a Toyota with slightly more premium features. Now the company has announced the supply of the Vitara Brezza as well.
Toyota is planning on using the Vitara Brezza as the base for its compact SUV in India, the Urban Cruiser. For this, Maruti Suzuki has announced that the approval for the supply of the Vitara Brezza has been given and will start shortly.
Unlike Glanza where the design of the Baleno wasn’t altered, the Urban Cruiser is expected to get some cosmetic changes. Many plastic parts are expected to get slight tweaks since those are the most inexpensive to alter. The
interiors too might see a lighter colour scheme.
Meanwhile, Maruti Suzuki reported 25% decline in net profit at Rs 5,650 crore for the fiscal ending in March 2020. The fall in profit margins has been attributed to lower sales volumes, higher sales promotion expenses and higher depreciation expenses.
Maruti Suzuki also stated that the declining profits were partially cushioned by lower operating expenses, cost-reduction initiatives, higher fair value gains on invested surplus, and reduction in corporate tax rates.
Maruti registered net sales of Rs 71,690 crore in FY2020, lower by 13.7% compared to year-ago figures. Total sales of the country’s largest automaker stood at 15,63,297 units in the fiscal (-16.1% YoY), including exports of 1,02,171 units (-6% YoY) and domestic sales of 14,61,126 units (-16.7% YoY).
After facing unprecedented headwinds owing to a general economic downturn and rising prices due to mandatory regulations, the Indian automotive industry came to a grinding halt towards the end of FY2020 due to the nationwide lockdown.
While Maruti Suzuki posted a 47% decline in total sales units in March (to 83,792), it reported zero domestic sales the following month, similar to other automakers in the country, as a consequence of shuttered production facilities and retail networks.
The company has since then announced the commencement of manufacturing at its Manesar plant in Haryana from May 12, albeit on a limited scale.
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