Tokyo: Shares of Suzuki Motor Corp., Japan’s fourth-largest automaker, rose as much as 4.3% amid optimism about the company’s performance in emerging markets including India.
The shares rose as much as 140yen(Rs49) to 3,390 and traded at 3,340 yen as of 12:38 p.m. on the Tokyo Stock Exchange. The shares have gained 12% this month.
Suzuki owns 54% percent of Maruti Udyog Ltd., India’s largest carmaker, which accounts for about one-tenth of Suzuki’s global sales. Net income at Maruti, which reports earnings on 24 April 2007, probably rose 18% to Rs426 crore in the three months ended 31 March, according to the median estimate in a Bloomberg survey of 11 analysts.
“Suzuki’s sales growth in developing countries is being viewed very favourably, compared with other carmakers dependent on markets in developed countries,” said Mutsuo Nakano, a market analyst at SBI Securities Co. in Tokyo. “Maruti’s performance will continue to grow this year.”
Suzuki last year earned more than 21% of its revenue in Asian countries outside Japan, the highest proportion among Japan’s five biggest carmakers, according to data compiled by Bloomberg. India is the carmaker’s second-biggest market, after Japan.
The International Monetary Fund on April 11 forecast economic growth this year will be 2.2% in the U.S., the biggest market for Japanese carmakers Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. That would be the weakest in five years. India’s economy will expand 8.4% this year, the fund said.
--With reporting by Santanu Choudhury in New Delhi. Editor: Langeland
To contact the reporter on this story: Makiko Kitamura in Tokyo at +81-3-3201-8482 or email@example.com.