India’s major car maker Maruti losing trust of its investors

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New Delhi: India’s biggest car maker Maruti shares have fallen by as much as 5.5 percent. Maruti’s decision to source cars from a Gujarat plant, which will be built by its parent Suzuki Motors, has not gone down well with big investors. Large Indian investors say minority shareholders would be better off if Maruti made the cars itself, but the company has stuck to its guns on the Gujarat plant.

Maruti Suzuki India chairman RC Bhargava claims that the Gujarat plant will create a win-win situation for shareholders and the company, but accepted that there is much more distrust and disbelief among investors and shareholders over the automaker’s Gujarat plant.