Turnover for automobiles will be hard to predict- Chairman of Maruti Suzuki

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Shreya Durvehttps://newsmint.in/
Future doctor, proud to be myself

Highlights

  • Maruti Suzuki Chairman RC Bhargava said on Thursday that the turnover for Automobiles will be hard to predict even though the sales are expected to increase
  • He also states, that even though they may profit, the situation in the automobile industry will not just improve so easily
  • The vehicle sales have been progressively declining by 23.67 percent in September itself
  • MSIL posted a 39.35 percent year on year decline in net profit in the automobile industry
  • The fall in numbers maybe because of the rise in prices of the cars and weak sales of the low-cost cars sold by the company
  • The company also declined any plans of launching an electric car next year, due to apparent lack of support from the lawmakers

The Chairman of Maruti Suzuki RC Bhargava said on Thursday, 24th October 2019 that the Demand turnover for the automobiles of the company cannot be predicted, even though the sales are expected to increase in this month during Diwali. He was quoted as saying,

I WILL NEED A CRYSTAL BALL TO PREDICT A TURN AROUND IN SALES BUT UNFORTUNATELY I DON’T HAVE ONE. THERE’S HOPE THAT IT’LL HAPPEN IN THE NEXT FEW MONTHS.

MSIL said that sales will be similar to last October, in the backdrop of a very high promotional offer. He, however, says that despite this increase in sales, the condition of the automobile industry won’t just get better so easily. He states that their company forms a big part of manufacturing in India and creates many job opportunities. He says,

THE AUTO INDUSTRY IS A REFLECTION OF THE ECONOMIC HEALTH OF THE COUNTRY. THE ECONOMIC SITUATION IN THE COUNTRY WILL GO DOWN FURTHER IF CAR PRODUCTION FALLS ANYMORE.

The current condition of the automobile industry

There has been a recent slow down in the sales of the automobile industry due to the number of factors like an increase in the cost of cars, and a reduction in the sale of low-cost cars. Bhargava also said the other factors responsible was were increased road taxes and registration fees keeping small car buyers from making new purchases. The company’s entry segment and compact segment have been affected the worse.

There has been a decline of 39.35 percent in the tear on year net profit at Rs 1,358 crore in the past quarter. Net sales have fallen down by 22.50 percent year on year to Rs 16,1240.40 crores in the second quarter of the financial year 2020.

Launch of a new electric model next year

Maruti Suzuki Chairman has also declined the possibility of the release of a new electric model which was being tested in 2020. They have earlier mentioned that an electric car based on the Wagon R would be launched next year and tested out. The company also feels that there is a lack of support from the Government of India towards the advent of electrical cars.

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