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Suzuki Struggles in India

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Suzuki Struggles in India

Maruti Suzuki, the Indian division of the Japanese automaker, is No. 1 in India and makes what is currently the world's cheapest car, the $4,500 Maruti 800. But the likelihood of increased competition at the low-end has been clouding the company's prospects. After Maruti Suzuki announced on July 22 that quarterly earnings had dropped 6.6%, to $109 million on higher costs for raw materials, the stock price plunged 8.9%; it's down 38% since the start of the year.