Maruti Suzuki's second quarter net profit down 39% on weak demand

Agencies

October 25, 2019

New Delhi, Oct 25: Weak demand environment dented automobile major Maruti Suzuki India's second quarter earnings, as the company reported a drop of 39.4 per cent in its net profit for the period.

Accordingly, the company's net profit for the quarter fell to Rs 1,358.6 crore compared to the same period previous year, largely on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses.

However, cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate aided the company to off-set some of the impact.

Besides, the company's net sales declined by 25.2 per cent to Rs 16,120.4 crore from Rs 21,551.9 crore reported for the same period during the previous year.

"The results of the company for the quarter (July-September) and half year (April-September) FY 2019-20 have to be viewed in the context of exceptionally weak demand environment," the automobile major said in a statement.

"This year, the automobile industry has seen a significant decline in sales owing to several factors. One of the main factors is increase in the cost of acquisition of the car due to various reasons coming together like implementation of more stringent safety and emission (BS6) norms, increase in vehicle insurance expenses and hike in road taxes in many states."

According to the company, lower availability of finance and increased down payment requirement have affected the affordability of customers to own cars.

The company's off-take during the quarter under review has been lower by 30.2 per cent to 338,317 vehicles.

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Vision 2030 push: Saudi Arabia cancels expat worker fees for licensed industrial facilities

News Network

December 19,2025

Saudi Arabia has abolished fees on expatriate workers employed in licensed industrial establishments, signaling a strong push to empower national factories and enhance the Kingdom’s global industrial competitiveness. The move reflects the leadership’s commitment to building a sustainable and resilient industrial economy under Saudi Vision 2030.

The decision was approved by the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman, following a recommendation from the Council of Economic and Development Affairs (CEDA). It forms part of a broader strategy to support, modernize, and strengthen the industrial sector.

By removing fees on foreign workers, industrial establishments gain greater operational flexibility and relief from financial pressures. This is expected to help factories expand production, improve efficiency, and compete more effectively in international markets, while reinforcing long-term sustainability.

The initiative aligns closely with Saudi Vision 2030, which identifies industry as a key pillar of economic diversification. A competitive and resilient industrial base is viewed as essential for driving innovation, attracting investment, and sustaining long-term economic growth.

Overall, the fee exemption underscores the Kingdom’s commitment to creating a supportive environment for industrial development and ensuring that Saudi factories remain globally competitive and capable of leading the nation’s economic transformation.

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