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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New Delhi: The death toll in the northeast Delhi communal riots reached 38 on Thursday, according to senior officials.
The death count at GTB Hospital has risen to 34.
Till Wednesday night, the total count of casualties had stood at 27, 25 of those at GTB Hospital in Dilshad Garden.
"Over 215 riot victims have been brought to our hospital and treated since February 24. However, at present only 51 patients are admitted. The condition of almost all patients are stable except one," Medical Superintendent of GTB Hospital Sunil Kumar said.
Since February 24, 25 victims have been brought dead at GTB Hospital and nine have died during treatment, he said.
One person was declared brought dead by doctors, while another had died during treatment at the LNJP Hospital on Wednesday.
"One more death at LNJP Hospital was recorded on Thursday. One fatality was reported at Jag Pravesh Chandra Hospital on Thursday, taking the total death toll to 38," a senior official said.
Over 50 patients have been provided treatment at the LNJP Hospital since the violence broke out on Sunday in various parts of northeast Delhi, officials at the hospital said.
Post-mortem have been conducted on nearly 15 victims, officials said.