The renowned household name in commuter vehicle market, Maruti Suzuki is all set to make electric cars in India. RC Bhargava confirms the news.
There is some great news coming from the huge name of commuter automobile makers Maruti Suzuki.
India’s largest passenger vehicle manufacturer Maruti Suzuki on Friday shares insight of future plans. According to a report the company’s net sales during the first half of this ongoing financial year stood at Rs 3,857 crore. The sale highs while recording a growth of 19. 5% over the same period last year. Maruti Suzuki’s net profit stands at Rs 4,040 crore. R C Bhargava, Chairman, Maruti Suzuki states while the operating profit increment by 16%, the net profit by 3. 8% due to lower non-operating income. This is as the yields on investment were lower incomparision to last year and some impact of commodities and additional advertisement expenses and increase in effective tax rates.
The second quarter (July-September 2017) has been a successful quarter for the company. The period sold 492,118 units at a growth of 17. 6% over the same period last year. In the domestic market, the company sold 4,57,401 units and also saw the success on new Dzire, Vitara Brezza SUV and Baleno with strong demand. RC Bhargava confirmed GST has not affected the doing of business and the consumer demand has not been affected.
On bringing electric vehicles, R C Bhargava said, “Maruti Suzuki will make electric cars, I cannot confirm the timelines but we will get electric cars and will remain the leader on the electric front as well, we have to move to electric and we will move to electric, in the meanwhile we would want the non-electric cars to be hybrid cars”.
Maruti Suzuki believes that future of hybrid cars is dependent on what government decides on its taxation policy.
Hybrid cars are superior to conventional cars as they reduce fuel consumption. The sale of company’s mild hybrid vehicles has come down drastically. The SHVS mild hybrid Maruti Suzuki Ciaz trend has reversed and post GST, only 30% of diesel variants of Ciaz sold are hybrids as against 70% earlier. However, the company would continue to invest in hybrid and mild hybrid technology in India.
Maruti Suzuki shares are also currently the most valued auto stock in the world behind Elon Musk’s Tesla.