Q: Could you share some SX4 numbers with us and what kind of an annual target could you keep on the basis of the initial response?

A: The SX4 and Swift are being produced at our new plant, which has a capacity of 100,000. We are producing above 7,000 and 2,500 units of Swift and SX4 respectively. We are already working at over 100% capacity. There is no possibility of increasing volumes at present. This is only possible when our expansion comes into being and that is some time away.

Q: How would you describe the market now? Is it a tough market for the car business and will be that way for the next three to six months?

A: The market is not easy. I think we have had an inauspicious one-month, which has gone by. Sales will pick up in August-September once the monsoons end and when the festival and wedding season begins. By then, I hope customers, who are hoping that interest rates would go down and are currently sitting on the fence, will come back into the market. I think we will have to struggle for another month or two and hopefully things should improve. But that is guesswork at the moment.

Q: What exactly is happening in the A3 segment because there have been numerous reports about how SX4 has overdone Honda and how the Logan is lagging. You must have done some channel checks. How are things shaping up there?

A: I have always believed that when you introduce a new model, the initial response, whether it is very good or lukewarm, should not be taken as a final decision. It takes some time before things settle down. We should give all these models another couple of months before we come to a conclusion.

Q: For the next two quarters, would it be fair to expect lower operating margins from Maruti?

A: As far as margins are concerned, I don’t think I will be able to discuss it. At the moment, when the market is tough and interest rates are high, the choice before us is either to scale-down our production or sell it by more marketing effort. In the end, it is better to have smaller margins but more volumes.

Q: Right now, is there any talk of a scale-down in production at Maruti like some two-wheelers have done?

A: So far, we have not reduced our production. That’s one of the reasons why, in June, we had built up quite a bit of stock. Though we were closed for eight days, we were still able to do 56,000, and so we did not scale-down our production. This led to an increasing in stocks but we were able to sell them.