Maruti Suzuki, the largest car company in India, has been hit by a wave of uncertainty, as the company's shares declined after reports of car recall emerged. According to reports, Maruti Suzuki has had to recall 2,555 of its popular hatchback car, the Alto K10.
The cars were reportedly recalled after reports of faulty steering gearboxes emerged. This development appears to have caused ripple effects on Dalal Street as well. The company shares, which started the day's trade on Thursday, August 8, on a lower note, declined further by over 1 per cent.
Maruti Suzuki has had to recall 2,555 of its popular hatchback car, the Alto K10. |
The company issued a statement through an exchange filing. It said, The Company has announced to recall 2,555 Alto K10 vehicles wherein it is suspected that there is a possible defect in Steering Gear Box Assembly (“Part”).
It further added, "The said defect, in a rare case, may affect the vehicle steerability. Out of abundant caution, customers of the affected vehicles are advised not to drive or use the vehicle till the Part is replaced. Affected vehicle owners will be contacted by Maruti Suzuki authorized dealer workshops for inspection and replacement of the Part, free of cost."
It is to be noted that this is the company's second such recall in 2024 alone. In March, the company had to recall over 11,851 units of the Baleno and 4,190 Wagon R.
The company shares, after plunging more than 1 per cent have recovered at the time of writing. At 12:24 IST, the car company's shares declined by 0.74 per cent or Rs 91.60, dropping to Rs 12,279.90.
The company also recently released its results for the first quarter of the new fiscal year. The company saw its net profit increase by 47 per cent, with the total profit standing at Rs 3,650 crore.
