Maruti to keep shareholders' interest before going for price Cut

New Delhi, Nov 19 (UNI) Country's largest automaker Maruti Suzuki India today said it will keep in view the interest of its shareholders before bring down the prices of its products.

''We will keep in view the interset of our share holders,'' company Chairman R C Bhargava said when asked whether the the auto maker is contemplating such move.

Finance Minister P Chidambaram yesterday called for industries to cut prices in order to push up demands.

The company had registered a four per cent increase in sales at 4,46,525 units in the first seven months this fiscal, as against 4,29,909 units in the same period last year.

Mr Bhargava said, ''We have no idea how it would fare in the remaining five months...Hopefully, the situation will get better but we will get a clear picture only by February,'' Mr Bhargava said.

The company is now betting on A-star, priced in the Rs 3,47,000-Rs 4,20,000 range, to prop up its exports despite the sluggish sales and plummeting bottomlines globally.

European markets are bad but the demand is shifting from sports utility vehicles (SUVs) to smaller fuel-efficient and environment- friendly vehicles which we can provide, he said.

Maruti exported about 53,000 cars last year to over 40 countries, he said and added that it aims to export 2,00,000 cars by 2010 on the back of models like the Swift and A-star.

When asked about the order from Nissan Motors, Mr Bhargava said the order is yet to be finalised and expects to bag it early next year, under a contract manufacturing deal struck in 2006.

Maruti had earlier said it would make 50,000 cars for Japan based Nissan Motor.

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