Connect with us
Monday,02-June-2025
Breaking News

Business

Festive Prospects: Healthy demand to sustain despite challenges says Maruti Suzuki

Published

on

Maruti-Suzuki

Passenger vehicle (PV) demand is expected to maintain growth momentum in the coming months despite rising ownership cost as well as production challenges.

Accordingly, PV market leader Maruti Suzuki India believes the upcoming festive season will boost buying sentiments.

Lately, the sequential sales’ momentum has been subdued due to rising ownership and operating cost.

According to Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India: “Healthy sales momentum is expected to be maintained during the main festive period starting from mid-October. Till now, the festival of Onam saw a decent sales uptrend. However, there are uncertainties on the supply side.”

In India, the main tranche of the festive season commences from Navratri till Diwali.

“Factors such as shift to personal mobility from shared transport, lower interest rates, migration towards established brands as well as pent up demand are giving a push to sales momentum,” he said.

“Rural sector is also doing well because the income levels have improved.”

Presently, the auto giant’s 40 per cent sales come from the rural areas while 60 per cent is from urban India.

Last month, the auto major’s total sales rose to 130,699 units from 124,624 units sold during the corresponding period of 2020.

The total sales in the month included domestic sales of 105,775 units, off-take to other OEM of 4,305 units and exports of 20,619 units.

However, on a sequential basis, it had sold 162,462 units in July 2021.

“Production has been impacted due to electronic components shortage in August. This is critical as cost and waiting period increases due to lesser production.”

The automobile major has reported an 8 per cent fall in its vehicle production in August.

It produced a total of 113,937 units last month, compared to 123,769 units in August 2020.

Besides, vehicle acquisition cost has gone up due to rising commodity prices and high regulatory levies.

India’s auto market is considered to be highly price sensitive unlike those of Japan and the European Union.

At present, the industry is grappling with rising costs of steel, plastics and rare metals in addition to high forms of levies, insurance and road tax.

Recently, the company had to go in for a price hike due to rising commodity prices, especially those of steel, copper, rhodium and palladium amongst others.

“Earlier, we tried not to raise prices to revive demand by cost cutting and other measures. But continuously rising material cost has left us with no options.”

Notably, 70 per cent of the overall vehicle cost is of manufacturing materials.

“Till now, we had to increase prices four times, in January, April, July for CNG cars and Swift and in September. Currently, commodity prices have started to soften-up a bit, the industry believes that the material cost will plateau out on these levels and soften more in Q3FY22 and Q4FY22.”

Furthermore, this phenomenon has in some degree countered the positive effects of easy availability of finance along with low interest rates.

Additionally, vehicle operating cost has surged as a result of exponential rise in fuel prices.

“Running cost, largely depends on fuel efficiency and its price. Costs of diesel and petrol are at their peak, thereby negatively impacting car sales.

“Positive thing is that CNG running costs are now much less than before and CNG cars are gaining traction.”

Business

SEBI confirms ban on LS Industries and key individuals amid fraud probe

Published

on

Mumbai, May 31: The Securities and Exchange Board of India (SEBI) has confirmed the suspension of LS Industries, its promoter Profound Finance, and four other individuals from participating in the securities markets.

The action comes as part of an ongoing investigation into allegations of fraudulent activities and manipulation of the company’s share price.

The individuals barred include Jahangir Panikkaveettil Perumbarambathu, the promoter of Profound Finance, as well as Suresh Goyal, Alka Sahni, and Shashi Kant Sahni HUF, a Dubai-based NRI shareholder of LS Industries.

SEBI has extended the deadline for completing the investigation until November 15 and has directed all involved parties to cooperate fully with the inquiry.

Back in February 2025, SEBI had issued an interim order banning LS Industries and its associates from trading in the stock market due to suspicious activities.

The regulator also ordered Perumbarambathu to return illegal gains of Rs 1.14 crore that he allegedly earned through the sale of shares under the suspected scheme.

SEBI ‘s probe centres on LS Industries and its associates being involved in a scheme to artificially boost the company’s share price.

Despite having reported almost no revenue for three consecutive financial years (FY22 to FY24) and the first three quarters of FY25, the company’s stock surged dramatically.

Between July 23 and September 27, 2024, the share price skyrocketed from Rs 22.50 to Rs 267.50 — raising the company’s market valuation to an eye-popping Rs 22,700 crore.

This sharp rise in share price occurred without any improvement in the company’s financial performance, raising red flags.

SEBI’s interim findings noted dubious transfers of shares to Perumbarambathu and unusual trading patterns by some individuals.

The regulator stated that these factors strongly suggested a deliberate plan to mislead investors and manipulate the stock.

SEBI emphasised that it appeared, on the surface, that LS Industries and the other parties were involved in a coordinated effort to deceive the market.

“The investigation is ongoing, and the parties will remain barred from market activities until its conclusion,” the market regulator stated.

Continue Reading

Crime

Woman drug supplier arrested in Delhi’s Mangolpuri; ganja seized

Published

on

New Delhi, May 31: A woman drug supplier was arrested from Delhi’s Mangolpuri area and 427 grams of ganja was recovered from her possession, police said on Saturday.

The accused was identified as ‘M’. The arrest comes amid the Delhi Police’s ongoing crackdown on narcotics under its ‘Zero Tolerance’ policy and the broader objectives of the Nasha Mukt Bharat Abhiyan (NMBA).

Acting on a tip-off received by Constable Bajrang of Police Station Mangolpuri that a female was allegedly in possession of ganja, a raid was conducted at the specified location.

Constable Bajrang and a female staff member observed a suspicious female carrying a white polythene bag.

“On noticing the presence of police personnel, the suspect attempted to hide. However, the alert police team, with the assistance of a female staff namely W/HC Pooja, swiftly apprehended her,” said Sachin Sharma, Deputy Commissioner of Police, Outer District, New Delhi.

A polythene bag containing 427 grams of ‘ganja’ and Rs 1,470 in cash was recovered from the possession of the accused.

The accused was booked under Section 20(A) of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 at Police Station Mangolpuri.

Further investigation is underway to identify and apprehend other associates involved in the illegal drug trade, the police said.

In another case on May 29, the Anti-Narcotics Task Force (ANTF) of the Delhi Police Crime Branch arrested Jameel Ahmad, the alleged mastermind of a major drug trafficking syndicate. Ahmed has been absconding for six years.

The case dates back to June 2019, when the then Narcotics Cell (now ANTF) of the Crime Branch seized 500 kg of ganja from a truck at Metcalfe Bus Stand, Kashmere Gate.

Three persons — Aslam Khan and Mausam Khan, both from Nuh district in Haryana, and Jakam Khan from Alwar, Rajasthan — were arrested in connection with the consignment, who revealed that they had committed the crime at the behest of Ahmed.

Continue Reading

National

Delhi records wettest May; IMD issues ‘Orange Alert’ for today

Published

on

New Delhi, May 31: Delhi recorded a minimum temperature of 34.8 degrees Celsius on Saturday morning, marking one of the warmer days of the season. However, despite the high morning temperature, this May has been unusual in many ways, including below-normal daytime temperatures, unprecedented frequent rains, and the absence of any heatwave conditions.

In terms of rainfall, May 2025 has been historic for Delhi, with the capital receiving 188.9 mm of rainfall, the highest-ever rainfall recorded in the month of May. This is over 202 per cent more than the normal monthly average of 62.6 mm. In contrast, May 2024 saw just 0.4 mm of rain, which was 99 per cent below average, with not a single rainy day recorded.

According to the India Meteorological Department (IMD), this is only the third time in the last five years that Delhi has seen the mercury stay below 40 degrees Celsius throughout May. Not a single day this month recorded conditions severe enough to be classified as an intense heatwave, making it a rare exception in the typically scorching summer month.

The current spell of unusual weather is being attributed to the early arrival of the monsoon in Mumbai, which has had a ripple effect on weather systems in northern India, including Delhi. However, meteorologists have clarified that the monsoon has not yet arrived in the national Capital, even though conditions have turned significantly cooler and wetter.

The IMD has issued an ‘Orange Alert’ for Delhi-NCR tonight, warning residents to stay alert as thunderstorms and heavy rain are likely. An ‘Orange Alert’ signals potentially disruptive weather, and people are advised to prepare for sudden changes in conditions.

The forecast suggests rain accompanied by thunder and strong winds will continue across Delhi and surrounding areas till June 4. A ‘Yellow Alert’ is also in place for Saturday, with the possibility of rain showers at any time during the day.

Meanwhile, the Air Quality Index (AQI) stood at 167, placing it in the ‘moderate’ category, according to the Central Pollution Control Board (CPCB).

The AQI scale defines values between 101–200 as ‘moderate,’ while 201–300 is ‘poor,’ and 301–400 is considered ‘very poor’.

With unpredictable weather continuing, Delhi people are advised to remain cautious and plan accordingly as the city experiences one of its most unusual Mays in recent history.

Continue Reading

Trending