Maruti to phase out all diesel cars from April next year
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Maruti Suzuki garners nearly 23% of its annual sales from diesel cars
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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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India dismisses report of Musk joining Modi-Trump call; says it was between 2 leaders only
New Delhi (PTI): India on Saturday rejected a media report that said billionaire Elon Musk joined a phone conversation between Prime Minister Narendra Modi and US President Donald Trump earlier this week.
External Affairs Ministry spokesperson Randhir Jaiswal said Tuesday's conversation was between the two leaders only.
The New York Times, quoting unnamed US officials, reported that Musk participated in the call between Trump and Modi, adding it was an "unusual appearance" by a private citizen on a call between two heads of state.
"We have seen the story. The telephone conversation on March 24 was between Prime Minister Narendra Modi and President Donald Trump only," Jaiswal said.
"As has been stated earlier, it provided the opportunity for exchange of views on the situation in West Asia," he said.
In its report, the New York Times said it is "unclear" why Musk was on the call or whether he spoke.
Our prime minister only spoke to Trump and there was no one else who spoke to the PM, people familiar with the matter said.
They suggested that it is for Washington to clarify if somebody else was in the room or listening to the conversation.
The New York Times said Musk's participation in the phone call signalled a reconciliation between the billionaire and Trump.
The two had fallen out last year following Musk's exit from a government task force charged with slashing the federal workforce.
The US president had initiated the phone call with Modi to discuss the West Asia crisis.
It was the first conversation between the two leaders since the West Asia conflict began on February 28.
In the conversation, Modi underlined the importance of ensuring that the Strait of Hormuz remains open, secure and accessible, noting that it is vital for global peace, stability and economic well-being.
