The trend of robust SUV sales is expected to continue as has been the case in the past couple of years and there seems no change in the buying pattern in Indian automotive market, Maruti Suzuki's Chairman RC Bhargava told CNBC-TV18 in a conversation on April 30.
Bhargava said Maruti Suzuki has benefitted from the trend in the SUV segment, and sedans have been losing market share to utility vehicles. In the fiscal fourth quarter, Maruti Suzuki reported a 48 percent year-on-year rise in its net profit to Rs 3,878 crore, with a revenue of Rs 38,235 crore.
The much-discussed electric vehicle offerings from Maruti Suzuki is unlikely to hit the market till the very end of FY25, Bhargava said. "The plan is to start by the end of FY25 and then scale up." It is likely that the first lot of the EVs from Maruti's assembly lines will be exported to Europe, and only in April next year would buyers get to see Maruti EVs, Bhargava added. Maruti Suzuki India has lined up Rs 10,000 crore capital expenditure for various initiatives, including new product launches and capacity expansion.
On margins, Maruti is expecting gains if the Japanese Yen continues to weaken against the US Dollar but the company needs to keep reducing the costs.
The trend in commodities is not clear yet and geo-political factors like the unrest in the middle east and lower Chinese EV sales will be key factors that the company needs to track closely, Chairman Bhargava added. Lower EV sales in China could impact the global trend too, as well as the prices of commodities used in car manufacturing.
Bhargava maintains that entry level car buyer is still not coming to the market and it will be a while before demand for cars in this segment revives.
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