Maruti’s recall of it’s A-Star numbering about 106000 includes 30000 units exported to Nissan Motor. Maruti’s product, from the Haryana facility is exported to Nissan for marketing as Pixo on a contract basis. This volume is within some 50000 units exported to Nissan and the cost of replacing the fuel tank would involve Rs300-Rs320 million.
The repair cost would be shared between Maruti and the supply dealer as Maruti alone will face Rs100-Rs120 million. The recall did not make any impact on the share price of Maruti, instead saw a rise by 2.4% in the Mumbai Stock Exchange after a fall by 3.2% two days ago. Maruti’s recall is not new in the industry as Toyota and Honda too faced such a crisis and even Maruti itself did so in the past. Maruti sees the positive impact out of this recall, said the VP for Research in the Mumbai brokerage.