Shares of Maruti Suzuki India (MSI) on Tuesday surged over 7 per cent on value buying even as the company’s domestic sales increased only marginally in February.
After 5 per cent fall on Monday following Budget proposals, which seek to add infrastructure cess on car sales, the stock climbed 7.80 per cent to Rs 3,495.50 on BSE.
A day after the Budget, the broader market also staged a comeback, with the Sensex surging 777.35 points to 23779.35.
Maruti Suzuki India on Tuesday reported a marginal decline in total sales in February at 1,17,451 units as against 1,18,551 units in the same month last year.
Company’s domestic sales however increased during the month to 1,08,115 units as against 1,07,892 units in February 2015.
“During the month, the reservation agitation had disrupted component supplies, causing a temporary suspension of production by the company. Total production loss due to this was over 10,000 units. Despite that, the company was able to achieve marginal growth in domestic sales,” MSI said.
That apart, car prices are set to go up, ranging from Rs 2,000 on mass market vehicles to over Rs 1 lakh on big diesel SUVs and sedans as Finance Minister Arun Jaitley decided to levy ‘infrastructure cess’ of up to 4 per cent.
Singling out diesel vehicles, in the aftermath of pollution problems in the national capital, Jaitley decided to impose 2.5 per cent cess on diesel vehicles of length not
exceeding 4 meter and engine capacity not exceeding 1,500cc, while higher engine capacity and SUVs and bigger sedans were slapped a cess of 4 per cent on the value of the car.