• 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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Bengaluru: Amid ongoing allegations of discrimination against outsiders in Bengaluru based on language, a recent research by the Institute for Social and Economic Change (ISEC) has found that 96% of migrant workers from northeastern states feel safe in the city, describing it as a migrant-friendly place.

The research, as cited by Deccan Herald on Wednesday, aimed to document the experiences, challenges, and coping strategies of northeastern migrants living in Bengaluru. The study, titled "Gender and Identity: With Reference to the North-Eastern Migrants in Bengaluru," was authored by Dr Channamma Kambara and Dr Malini L. Tantri of ISEC. It surveyed 796 migrants from various northeastern states.

The migrants highlighted Bengaluru's job opportunities, good climate, and friendly, accommodative environment. They said the capital city offers safety and acceptance, with relatively low levels of discrimination and racism. Many expressed satisfaction with work culture, access to services, and food options.

Interestingly, the research found that 52% of respondents felt that there is greater unity among northeastern members in Bengaluru compared to their native states.

The study also revealed that a significant number of migrants, particularly women, showed a preference for settling down in Bengaluru.

However, about 28% of respondents reported facing subtle discrimination at the workplace, primarily linked to language barriers, pay disparity, gender bias, and religion.

"Nonetheless, the migrants also attend various cultural, social and festive events where they are not discriminated except that the migrants cannot follow the language and culture," the research noted.