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Question of the Day (19-Jul-20)

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Maruti Suzuki (India), for long Suzuki Motor Corp’s (Japan) biggest overseas operation in volume terms, has emerged as the biggest driver of its Japanese parent’s profits. The Indian car maker’s share of Suzuki’s consolidated profit rose to 46% during the year ended March 2009, up from 30% in the previous year. Maruti’s topline is around 13% of the Japanese group’s consolidated revenues. This when major markets, including the US, Europe and most of Asia along with Japan are down, and car sales have plummeted globally.

Which of the following, if true, must have helped Maruti Suzuki (India) to increase its share of Suzuki’s profits?
OPTIONS
 
 1)Suzuki Motor’s sales had fallen 14% in the fiscal year.
 2)Maruti Suzuki India’s share of rural sales has gone up to 20% of the total sales from 3.5% two years ago.
 3)Maruti Suzuki India has a range of two wheelers, the sales of all of which rose from 10% to 60 % in the fiscal year, riding on the back of increased demand from rural India.
 4)Suzuki Motors had launched all their top line models of cars in the fiscal year in the Indian market first.
 5)The shares of profits of other subsidiaries of Suzuki Motors in Europe and various other markets had declined in the fiscal year.

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