Aim to beat FY16 projected industry growth of 5-6%: Maruti

Below is the transcript of RS Kalsi's interview with Sumaira Abidi & Nigel D’souza on CNBC-TV18.Sumaira: This time around sales have been a little bit lower than what the expectations were. Was there a big dip that you saw in your demand and which segment was it seen in, whether it was domestic or exports?A: You see the monthly numbers have to be seen in context with the quarterly figures as well as last years figures. So, last year in the month of February, there were changes in the excise, so as a result of this, the figures of February and March should be seen together. At the same time we have done Rs 1,03,000 in the domestic market and if we see the overall annual figures, these are at Rs 11,70,000 plus which is a growth of 11.1 percent. This is in line with our expectations.

In the beginning of the year we had said that we would be aiming for double digit growth and we have been able to achieve that in spite of the adverse market conditions. Nigel: But are you facing any pressure in specific in export markets because that as well has seen a drop of close to around 30 percent for the month of March. A: Again, export numbers, I would request you to see in the annual context and we are on a growth path. To be very precise, we have grown by more than 20 percent, however month-on-month, there may be variations and also these numbers are clocked in line with the shipment details. If the shipment gets delayed by a day or two then these numbers are booked in the next month.

Having said that, we are totally focused on the export market with say 20 percent growth which is quite robust and we are working in the new markets like South Africa, Latin America, countries like Mexico, Chile, Sri Lanka, Indonesia. So, our exports are growing there and also in the non-European countries this year we have sold more than one lakh vehicles which is quite a positive mark and we are satisfied with the overall growth in the export markets. Our efforts are on to further extend the market.Sumaira: For FY15 you have registered a total growth of about 12 percent. So how is FY16 now looking to you? Will you manage to look at perhaps the high end double digit growth?A: It is difficult to give a forecast for the next year. We generally do not give guidance on that. However if we see the Society of Indian Automobile Manufacturers (SIAM) projections, which are around 5-6 percent for the industry and our endeavor is to grow more than industry and that is what we will be aiming at.Nigel: But a 5-6 percent growth that SIAM projects is a very low single digit. Are you noticing any kind of slow down in demand, particularly in the rural economy and should we expect only single digit growth from Maruti for FY16 as well?A: When I talk about industry, 2014-2015, the industry has grown by about 3.9 percent although March figures are yet to be collated. Now, in that context if we see 5-6 percent that is an improvement.

However when we particularly talk about rural economy, yes I agree with you, there are certain uncertainties particularly if we see in the recent past, earlier the monsoon was delayed and subsequently when the crop was ready, there had been unseasonal rains as well as hail storms which spoiled the crop. So, this kind of unseen things which happened in the market they add to the uncertainties. At the same time we are quite focused on the rural market and certainly our endeavor would be to enhance the reach and tap the potential in these markets.

Sumaira: This month around we have seen a big dip in the compact car segment as well. Can you tell us how your new launch Celerio is doing? Has excitement receded for that product?A: Celerio on the whole is doing well and today we have almost 40 percent booking on the automatic gear shift version and in fact there is a slight waiting also for the customers. The numbers are in line with our optimistic estimations, it is doing fine.Nigel: But the Celerio sales run-rate has been roughly around 5,000 units per month. Will that continue? What is the current waiting period?A: We are at 5,000 plus and we would continue with that and waiting period as of now is around six weeks for the automatic gear shift version and the manual transmission version is available at the dealership. Sumaira: Since you had said that you would grow better than the SIAM projections. Can you tell us where exactly this growth will come in from? A: I said that SIAM projection is for the industry and we have always been growing more than industry. For example, last year industry grew at 3.9 percent and we grew at 11.1 percent. So, I do not mean that we will be exactly as per the SIAM projections. So, that is their projections and we would be anyway doing much better than the rest of the industry with our efforts in the domestic market. Nigel: So let us look ahead. What are the new launches that are lined up for the next 3-6 months?A: I would say that you will be the first person to know when we go in for those models. However at least one model will come in the light commercial vehicle segment and there would be another model in the SUV category where it would be S Cross. Plus any more launches, you will be the first one to know about it before the rest of the customers get to know about it.