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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Nine people including Indian arrested for looting departmental store in Kathmandu
Kathmandu (PTI): At least nine people, including an Indian national, were arrested for their involvement in looting various items from a departmental store during the pro-monarchy protest in Nepal, police said.
Ravi Ranjan Kumar, a resident of Patna in Bihar, was among those arrested for looting the Bhatbhateni Departmental Store during Friday's protest and vandalism.
The arrested people looted bottles of whiskey, fruits, beer, and make-up items from the store, a police official said.
The police have initiated necessary legal action against those arrested, said a statement issued by the Kathmandu Valley Crime Investigation Office.
During the pro-monarchy protest in Baneshwor-Tinkune area of Kathmandu, demonstrators pelted stones, attacked the office of a political party, set vehicles on fire and looted shops.
Two persons, including a TV cameraman, were killed and 110 others injured in the clashes between security personnel and the protesters, who were demanding the reinstatement of a Hindu monarch.
Meanwhile, the Kathmandu District Court granted judicial remand for five days to 41 people including the leaders of the pro-monarchy Rastriya Prajatantra Party (RPP) to investigate the vandalism.
The Kathmandu district police are charging 41 people, including RPP General Secretary Dhawal Shumsher Rana and Vice President Ravindra Mishra under the State Offense and Organised Crime Act, according to the police.
So far, 110 people have been arrested in connection with the violent protest.
The pro-monarchists have become active since democracy day in February when former monarch Gyanendra Shah said, “Time has come for us to assume responsibility to protect the country and bring about national unity.”
They organised rallies in Kathmandu and other parts of the country, demanding the reinstatement of the 240-year-old monarchy, abolished in 2008.
On Sunday, former vice-chancellor of Nepal Academy Jagman Gurung was appointed the Monarchy Reinstatement Movement Committee chief.
Gurung will take charge as the acting commander of the committee as staunch royalist Navaraj Subedi, the commander of the committee, has been put under house arrest following the violent demonstrations.
