The car maker has said in the past that it is preparing for an increased competitive intensity in India's automotive space, which will improve the manufacturing standard as well as expand the market.
Maruti Suzuki said it has been calibrating production to reduce dealer inventory, which had reached well over 30 days, and the measures will start showing results from the end of this month.
Any setback in demand is not going to change Maruti's strategy for small cars, Chairman RC Bhargava said at the AGM.
Maruti Suzuki aims to offer cars with diverse technologies at various price points, aligned with India’s economic and social environment and resource availability.
Maruti Suzuki's electric vehicle variants are unlikely to hit the market till the very end of FY25, said the chairman.
The Maruti Suzuki chairman sees hope in the hordes of two-wheeler owners who could become small-car customers as the economy picks up pace
Investments will be directed towards enhancing the supply chain, expanding export infrastructure, and strengthening marketing and sales teams.
The task of managing the production of 40 lakh units annually, Bhargava added, may necessitate restructuring
R.C. Bhargava, in a fireside chat with Ravi Krishnan, Deputy Editor, Moneycontrol, said: “If you want to be a manufacturing giant, we must listen to the Prime Minister and ensure that manufacturing is inclusive... "
Moneycontrol Policy Next Live Updates: Policy Next Series kicked off today in the national capital. Minister of Road Transport and Highways, Nitin Gadkari, in his keynote address, he said, "Cannot form a sudden opinion on Joshimath incident. Joshimath has a lot of encroachment and no drainage system. However, we await the report on it. The enquiry is underway and will comply with whatever is in the report.
Moneycontrol launches a new cycle of premium events in the Policy Next Series on March 23 in New Delhi.
RC Bhargava also said India's economic growth rate could be higher if the manufacturing sector grows fast, which 'unfortunately' has remained a laggard despite the best efforts of the Narendra Modi-led government at the Centre due to implementation gaps at the ground level.
Higher commodity prices and chip shortage concerns had impacted Maruti's earnings in the year-ago period.
In his address to the annual general meeting of the company, the first physical meeting after two years following disruptions by COVID-19 pandemic, he said in future Maruti Suzuki India's contribution to Suzuki's global production will go beyond 60 per cent, which was achieved last year.
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Maruti Suzuki India (MSI) is urging the government to reconsider its proposal to make six airbags essential in passenger vehicles, citing the move's adverse effect on the already dwindling small car market and jobs in the auto sector.
Bhargava said over the last three years the market at the lower end, for people who either use two-wheeler or use entry level hatchbacks for commuting, has been shrinking significantly.
Countering the criticism from the proxy advisory firm, Bhargava noted that all models produced at Suzuki Motor Gujarat (SMG), including EVs, would be ultimately sold by Maruti Suzuki India (MSI) in the marketplace.
Stating that launching an EV would depend on market conditions, Bhargava said at present it is difficult to predict the pricing of electric vehicles, batteries, how the infrastructure is built up and "the costing is not at all in our hands".
Maruti Suzuki’s Chairman RC Bhargava has expressed scepticism over switching to electric vehicles, lampooning the Centre for not reducing tax on CNG vehicles. Speaking at the 61st annual convention of the Society of Indian Automobile Manufacturers, Bhargava said that the country’s largest carmaker will not be entering the EV space in the short term. Here’s why.
"Management themselves need, I think, to curtail the kind of expenditures on themselves personally. Recent shareholder action seems to suggest why a section of shareholders share this view and are voting on these lines and I think that's a good development for the whole of industry," Bhargava said.
Explaining the rationale behind the moving of Dzire production to Gujarat, Bhargava said the company keeps adjusting between different plants depending on the market demand of the different models.
The success of Maruti under Jagdish Khattar was only to be expected and was no surprise, writes RC Bhargava, chairman of India’s largest automobile company.
While the speed of implementation will determine how quickly benefits flow, the reaction of investors and the stock market demonstrates that the decision has created confidence that the country’s economic growth trajectory will increase sharply.
Maruti Suzuki's domestic sales increased marginally to 1,44,219 units last month as against 1,43,686 units in November 2019.