Maruti Suzuki garners nearly 23% of its annual sales from diesel cars
The carmaker also today announced a hike in prices of some of its models
Maruti Suzuki, the country’s largest vehicle manufacturer, today announced that it will stop manufacturing diesel vehicles from April 1, 2020 when the new BS 6 emission norms will be introduced. The high cost of upgrading existing diesel engines to the BS 6 norms propelled the company to take such a decision.
The company will try to focus on compressed natural gas (CNG) and hybrid technology driven vehicles to compensate the vacuum created by the phasing-out of diesel vehicles.
Mint was the first to report on Feb 14, 2019 that Maruti was in talks with its parent company Suzuki Motor Corporation for discontinuation of diesel vehicles from 2020.
According to R C Bhargava, chairman, Maruti Suzuki India Ltd, from April next year the company will stop manufacturing diesel vehicles since substantially higher development cost will not make diesel a viable option for consumers.
“We have taken this decision so that in 2022 we are able to meet the Corporate Average Fuel Efficiency norms and higher share of CNG vehicles will help us comply with the norms. I hope the union government’s policies will help grow the market for CNG vehicles," added Bhargava.
Apart from that, the company reported a 4.6% year-on-year decline in net profit to ₹1,795 crore for the quarter ending March 31, 2018 as a result of high commodity and forex costs and increased discounts offered by the company to attract buyers since vehicle sales remain subdued.
The total vehicle sales of the company increased by just 0.4% year-on-year to 4,28,863 units while the net sales or revenue dropped by 0.7% year on year to 20,737.5 crore. The operating margins contracted by 300 basis points due to increase in commodity cost and discounts.
In the full year FY 19, the New Delhi-based company reported 2.9% decease in net profit to ₹7,500.6 crore while the revenues grew by just 6.3% to ₹8,3026.5 crore.
According to Ajay Seth, Maruti's executive director, Finance, overall increased discounts offered to customers and commodity costs had an adverse impact on the financials of the company in FY 19 and the company will cut costs in different part of its operations to stabilise the operating margins in FY 2020.
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Mumbai, Jul 21: Veteran actor Naseeruddin Shah Sunday expressed solidarity with the family members of those killed in incidents of mob lynching in the country.
Speaking at a national convention on the theme of 'state complicity in hate crimes' in Dadar here, Shah said the victims and kin of mob lynchings have suffered a lot.
The event was organised by Democratic Youth Federation of India.
"I feel proud to be with them (kin of victims) in this programme and salute their courage. They have faced a lot more than us in their life. We have faced not even two per cent of their sufferings," he said.
The actor said he had often been often criticised for his remarks.
"Some called me a traitor, some asked me to go to Pakistan. But these taunts were nothing in comparison with the pain of those people who suffered mob attacks," he said, adding that "My admiration, sympathy and company will always be with these people".
In the past, Shah had been criticised sharply over his comments on rising incidents of mob violence in the country.
He had said that the death of a cow was being given importance over killing of a policeman in mob lynching in Bulandshahr.
Shah had said that he was worried for children in today's India because he imagines a situation where his children may be surrounded by an angry mob and asked: "Are you Hindu or Muslim?"
His comments had drawn sharp reactions from political quarters.