Maruti Suzuki shares slide after dip in production and Rs 2,159.70 crore income tax notice

Maruti Suzuki Share Price: Maruti Suzuki shares ended Wednesday's trading session on BSE on a lower note, sliding 1.90 per cent, or Rs 196.50, at Rs 10,144 apiece. The stock's lacklustre opening came a day after the automaker announced a 1 per cent dip in its total vehicle production, and the income tax department slapped it with a Rs 2,159.70 tax office.  

The stock of the largest Indian car manufacturer closed the trade session on Tuesday at Rs 10,340.90 and opened at Rs 10,298.95 on Wednesday before starting to dip to around 2 per cent at market close.

Maruti Suzuki Production Numbers Dip

On Tuesday, the company said that its total production had declined by 1 per cent to 1,74,978 units Year-on-Year in September.

The company had produced 1,77,468 units in September 2022.

Last month, production of entry-level cars—Alto and S-Presso- declined by 70 per cent to 10,705 units from 35,887 units in the year-ago period, Maruti Suzuki India said in a regulatory filing.

Similarly, production of models like Baleno, Celerio, Dzire, Ignis, Swift, and WagonR, declined to 90,849 units in September as against 92,717 units in the same month last year.

Production of mid-sized sedan Ciaz declined to 2,304 units last month against 2,654 units in the same month of the corresponding year.

Total passenger car production dropped by 21 per cent to 1,03,858 units last month as against 1,31,258 units in the year-ago period.

Total passenger vehicle production fell marginally to 1,73,451 units last month over 1,73,929 units in September 2022.

Maruti Suzuki Gets Income Tax Notice

Maruti Suzuki on Tuesday also received a Draft Assessment Order for Rs 2,159.70 crore from the Income Tax Authority, the company said in a BSE on Tuesday.

The draft assessment order dated October 3 is for the financial year 2019-20, the auto major said.

"The company has received a Draft Assessment Order for the FY 2019-20 wherein certain additions/ disallowances amounting to Rs 2,159.70 crore with respect to returned income (the income disclosed by the Company in its Income Tax return) have been proposed," Maruti Suzuki India Ltd said in the statement.

(With inputs from agencies)