Suzuki Motor sees limited annual profit growth on Japan tax rise, India uncertainty

FILE PHOTO: The Suzuki logo is seen during the first press day of the Paris auto show, in Paris, France, October 2, 2018. REUTERS/Benoit Tessier/File Photo

TOKYO (Reuters) - Suzuki Motor Corp on Friday forecast a 1.7% rise in profit for this year, anticipating limited growth due to an expected sales tax rise in Japan as well as uncertainty in the economic outlook in India, its biggest market.

Japan’s fourth-largest automaker expects operating profit of 330 billion yen ($3.01 billion) in the year through March 2020, lower than the 362.2 billion yen average of 22 analyst estimates compiled by Refinitiv.

In the year just ended, profit fell 13.3% to 324.4 billion yen from the previous year’s record high.

The compact car maker took a hit from a weaker Indian rupee, while costs related to a domestic vehicle recall stemming from improper vehicle inspections also weighed on its bottom line.

Reporting by Naomi Tajitsu; Editing by Christopher Cushing