India's largest car manufacturer Maruti Suzuki India Limited, reported 36% drop in net profit for the quarter ended September 2008. The net profit declined to Rs 296.1 crores against Rs 466.5 crores posted in the corresponding period of the previous year.

Net sales of the Company increased 6% to Rs. 4,806 crores against Rs. 4,529 crores posted in the second quarter of the previous year. Total volume of vehicles sold dipped 2.5% to 1.71 lakh units compared to last year. The major portion of Maruti Suzuki's profit was dented by depreciation loss of Rs 165 crores this quarter compared to 88 crores for the same quarter previous year.

Mr. Shinzo Nakanish, Managing Director, Maruti Suzuki India Limited commented that sales and profitability of the company took a hit because of lack of credit availability, depressed market sentiments and high interest cost. Mr. Nakanish made a point that India will soon overcome these crisis because of the demand of domestic market. He also informed that inspite of slowdown of economy, his company will continue with its capex plan of investing Rs. 9,000 crores for capacity expansion, engine plant and Research & Development centre.

The company announced price increase in the range of Rs 2,000 to 6,000 on most of its car models.