Maruti Suzuki Stays Committed to Affordable Cars Despite Market Dip, Says RC Bhargava

Maruti Suzuki will keep working on making low-cost small cars aimed at budget-conscious buyers, despite a shrinking market for these vehicles, according to RC Bhargava, Chairman of Maruti Suzuki India. Bhargava shared this in the company’s annual report for the fiscal year 2023-24, published on August 4.

Focus on Economic Needs

Bhargava believes that by improving their competitiveness, the company can better meet the economic and social needs of its customers. He emphasized the company’s commitment to producing affordable, safe, and comfortable cars that cater to India’s economic conditions.

Small Car Sales Decline

While the overall passenger vehicle market grew, the small car segment saw a decline. Maruti Suzuki sold 2,22,193 units in the April to June quarter, a 12.8% drop from 2,54,973 units in the same period last year.

Expansion in Rural Areas

The company aims to expand its service network to reach rural areas and small towns. Currently, about 46% of Maruti Suzuki’s sales come from these regions.

Push for Green Technologies

Maruti Suzuki is waiting for government policies to promote green technologies like strong hybrids, which can replace fossil-fuel vehicles and reduce carbon emissions. Bhargava noted that hybrid cars can improve fuel efficiency by 35-45% and cut greenhouse gas emissions by 25-35%. While CNG cars are better than traditional fuel cars, hybrids are preferred.

Plans for Electric and Hybrid Cars

Maruti Suzuki plans to introduce strong-hybrid technology in the next six to seven years and is also working on electric vehicles (EVs) and other green technologies. The company will launch its electric cars soon and is testing biogas production.

Efforts to Increase Fuel Efficiency

The company is exploring ways to use petrol blended with 20% ethanol and is working on technologies to use higher ethanol blends in the future.