Maruti Suzuki has cut its growth forecast for FY13 from 10% to just 5%, reports Ronojoy Banerjee of CNBC-TV18.
Maruti Suzuki, chairman RC Bhargava said that they are looking at expanding diesel capacity earlier than planned. Bhargava also hinted that the company may expand its capacity in Gurgaon and is also mulling a new engine plant in Gujarat.
"If the diesel disparity and demand for diesel continues then we have to go for expansion. The market share of diesel cars this year has risen to 58 percent, it was 47 percent last year and 36 percent a year before that. I think the share will be over 60 percent by the end of this year," says Bhargava
If this trend continues then what is the option? We can also look at other places including Gujarat for setting up a plant; it all depends on the Gujarat product mix. We expect a growth of around 5-5.5 percent, which means in the second half of this year we will have to grow at about 10-11 percent, 10 percent at least.