Maruti Shares Dip After Recalling Over 2,000 Alto Vehicles

Shares of Maruti Suzuki India were down on Thursday after it issued a recall notice for some of its vehicles.

What Happened:  Maruti Suzuki is recalling 2,555 Alto K10 vehicles, the company said in a press filing on Wednesday. These vehicles are suspected to have a possible defect in the steering gearbox. 

The defect may affect the steering of a vehicle, the auto major said in the filing and has advised users to refrain from using these vehicles until the part is replaced.

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"Affected vehicle owners will be contacted by Maruti Suzuki authorised dealer workshops for
inspection and replacement of the part, free of cost," Maruti added.

In March, Maruti Suzuki issued a recall for more than 16,000 Baleno and WagonR vehicles due to a potential issue with the fuel pump. This recall affected 11,851 units of the Baleno and 4,190 units of the WagonR, all manufactured between July 30, 2019, and November 1, 2019.

This defect posed a risk of engine stalling or starting problems, leading the company to take proactive steps to prioritise customer safety.

Last week, the company reported a 4% dip in its total sales in July to 1.75 lakh units from 1.81 lakh vehicles sold in July 2023. Vehicles in the compact segment, which include cars like Baleno, Celerio, Dzire, Ignis, Swift and WagonR saw the highest sales at 58,682 units in the month.

Price Action: Maruti's shares fell 0.12% lower to ₹12,356.30 on Thursday morning.

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