【New Delhi】A few days after Maruti Suzuki's sales figures showed flat growth in 2013-14, Chairman R C Bhargava reckons the year ahead is going to be difficult for the car sector.
Our sales have been at the same level as the previous year. Petrol cars went up and made up for the decline in diesel cars. Rural sales went up 16 per cent and made up for slow urban sales. Our exports fell because new regulations impacted sales in Algeria. We do not see any evidence that things will change significantly. We do not see growth of more than three-four per cent. If it is six-seven per cent, we will be very lucky.
○Suzuki has to double equity in Gujarat arm
【New Delhi】Suzuki Motor Corporation, the Japanese parent of Maruti Suzuki India Ltd (MSIL), might have to infuse nearly double the equity amount it had earlier planned to put into its proposed 100 per cent subsidiary for the Gujarat passenger vehicle factory.
This is because Maruti Suzuki, after facing an opposition from minority shareholders and analysts, has effected some changes to the structure. Chairman R C Bhargava, however, says the deal has not been fundamentally altered. "The structure remains unchanged. The only difference is, under the earlier plan, Suzuki was to invest Rs 3,000 crore as equity in the new plant. But now, it might have to invest close to Rs 6,000 crore, depending on growth, timing and the amount accruing from depreciation, and when the plant reaches production of 1.5 million cars, he says."
【News source】
Purchasing power to buy a car has been eroded: R C Bhargava
Suzuki has to double equity in Gujarat arm
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