Commenting on Maruti Suzuki's announcement to discontinue diesel cars from next April, Bhargava said the impact of this decision on volumes would be known from July.
Automobile sales usually rise post- elections, said Bhargava, Chairman of Maruti Suzuki India.
The Japanese firm along with partners will set up the proposed lithium-ion battery production plant in Gujarat. "The Gujarat facility which Suzuki has set up, the first line of 2.5 units has been already commissioned, work is going on the second and third lines that will increase the Gujarat plant capacity to 7.5 million units in 2-3 years," Bhargava said.
The way the market and the economy is growing there is a need for more and more capacity, said RC Bhargava, Chairman, Maruti Suzuki.
"We do not see any slowing down in fact March will be a month which will probably see very high levels of sale, retail sales will be high", RC Bhargava, Chairman, Maruti Suzuki told CNBC-TV18.
CNBC-TV18 will felicitate the leaders who have led the country’s glorious journey from the front, in the 12th edition of CNBC-TV18's India Business Leader Awards (IBLA) on March 23. The business leadership awards recognise leaders who create and sustain entrepreneurial initiatives, develop best practices and carve out powerful businesses in the global economy.
In an interview to CNBC-TV18's Reema Tendulkar and Prashant Nair, P Phani Sekhar, Fund Manager at Karvy Stock Broking shared his reading and outlook on the fundamentals of the market.
Terming the dip in footfalls and new bookings on account of demonetisation as a â€œtemporay blipâ€, Chairman RC Bhargava said latest reports from its dealerships indicate a reversal in the trend. He added that the company is unlikely to face a demand slowdown in 2017.
Digital payments need to be promoted in the big cities because of a lack of proper resources and infrastructure, RC Bhargava, Chairman of Maruti Suzuki. Once they get used to going cashless, the digital drive can be extended to the rural pockets of the country.
The Nano has been in the news with ousted Tata Sons chairman Cyrus Mistry stating that it needed to be shut down if Tata Motors had to make a turnaround.
Lower promotion expense and higher other income have boosted Maruti Suzuki‘s profits in the second quarter of FY17 ended September 2016. The carmaker‘s management believes profits will increase once operations at its Gujarat plants begin in full swing.
"The intention was a good intention and Tatas tried to fulfil that intention. Anyway we could not have done it. I think he needs credit for having attempted it," Bhargava told reporters here.
Post the monetary policy meet, Keki Mistry, VC and CEO of HDFC told CNBC-TV18 that the inflation expectations gave RBI impetus to cut rates.
Baleno and Vitara Brezza have had response far in excess of the company's expectations. The result has been waiting periods of 6-7 months, Bhargava said at the company's annual general meeting here today.
The company has never been concerned about stock price, but more about making good cars and delivering good service to customers, said Maruti Suzuki Chairman RC Bhargava. He added the company may advance commissioning of a second line of manufacturing at its Gujarat plant which started operations in February.
In a relief to automotive industry, the Supreme Court on Friday lifted the ban on registration of diesel cars in the National Capital Region, subject to a 1 percent cess paid at the time of registration.
RC Bhargava, Chairman of Maruti Suzuki, said that the GST is a good move, but the focus should be on implementing it once the legislation is passed. Legislation on paper won‘t be good unless there is implementation, he said.
Wondering whether the ban on over 10-year-old diesel vehicles will improve air quality in the national capital, top carmaker Maruti Suzuki's Chairman RC Bhargava has said the industry would certainly be hit hard by it.
With the decision on diesel vehicle ban in Delhi still pending, the Kerala government is now mulling a green tax to reduce pollution in the state.
Questioning the rationale behind the recent court decision to ban large diesel vehicles in the National Capital Region, Maruti Suzuki RC Bhargava said car emissions were only a small factor in overall pollution and added that automakers were held back from moving to stricter norms due to lack of fuel.
RC Bhargava, Chairman of Maruti Suzuki says that exports of cars to Japan will only reduce a part of the Yen impact.
Credit Suisse says that scale-up in Baleno exports which constitutes half of total exports and success of the Vitara Brezza will work in favour of Maruti. Vitara Brezza forms 10 percent of domestic revenues and royalty is paid in Indian currency only.
RC Bhargava, Chairman, Maruti Suzuki is not overly worried about the impact of stronger yen because the company has reduced its dependence on yen in the last two quarters, adding that for all the new models the royalty is also rupee denominated.
Even as auto sales have been flat for two years, market leader Maruti Suzuki has seen its market share grow.