UDAIPUR: Competitive pressure will be "most intense" in this financial year with rivals launching new models and overall car market slipping into a slowdown due to rising interest rates and high petrol prices, feels Maruti Suzuki.
The market leader's sales growth dropped to 3% in the first quarter of this fiscal compared to a 30% growth in 2010-11. And the going looks tough. "Rapidly rising interest rates are the prime worry for the industry as well as for Maruti. Bulging EMIs are keeping customers away from showrooms and if interest rates go beyond the current levels, the industry will have major problems," Mayank Pareek, Maruti Suzuki's managing executive officer (sales & marketing), told TOI here. He expects Maruti's sales to grow by "small single digit" this fiscal. "And it can slip into degrowth if the interest rates rise further." Vcommindia News
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