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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Rajkot, Jan 17: Shikhar Dhawan missed a well-deserved ton by a whisker but laid a solid platform for the aggressive duo of skipper Virat Kohli and KL Rahul to ensure a commanding total of 340 for 6 against Australia in the second ODI here on Friday.
Back in form since the last T20 encounter against Sri Lanka, the senior opener looked solid in his 90-ball-96 while Kohli, back at his familiar one drop position, held the middle-order with a 78 off 76 balls and Rahul (80 off 52 balls) provided the final flourish in what was much improved batting performance from the hosts.
While Dhawan added 81 for the opening stand with Rohit Sharma (42) who would regret this missed opportunity on a batting belter after getting set, the southpaw also had a vital 103-run stand with Kohli for the second wicket.
The Kohli-Rahul duo's 78-run partnership off 10.3 overs was also pivotal as it helped the latter to launch a final assault during the end overs.
While Dhawan's innings had 13 fours and a six, Kohli had six hits to the fence including a classic jab-flick off Pat Cummins (0/53 in 10 overs). Rahul's was a stand-out innings with six boundaries and three -maximums, one of which was a lofted cover drive off Mitchell Starc (0/78 in 10 overs), who had a forgettable day.
Adam Zampa (3/50 in 10 overs) was once again the stand-out performer taking Kohli out of equation for the seventh time in limited overs just when he was looking to get his 44th ODI ton.
At the start, Dhawan began with a bowler's bck-drive, giving a glimpse of what was in store. The southpaw completed his sixth fifty versus Australia in 60 balls as he played shots all around the ground.
The last time Dhawan scored successive fifties was in January 2019 against New Zealand. This was his 29th in 50-over cricket.
The left-hander was particularly harsh on left-arm spinner Ashton Agar (0-63 in 8 overs), whom he hammered for two successive fours in the 25th, a sweep and a reverse-sweep, and then in 27th over stuck a four and a six, not allowing him to settle down.
In fact the 77 runs from 10 overs bowled by fifth and sixth bowling option Marnus Labuschagne (0/14 in 2 overs) was the difference from the last game.
However, Dhawan missed out on his 18th ODI hundred by four runs when he pulled a Kane Richardson ball straight to fine leg in 29th over.
Shreyas Iyer (7) fell cheaply. But Kohli was in sublime touch as he ran the singles and doubles with intensity and also it the loose balls for boundary.