The big decision taken by Maruti company, the common man will not be able to buy this car?
The country’s largest carmaker Maruti Suzuki India (MSI) has taken a big decision. The company has announced that it will not sell diesel cars in India from April 1, 2020.
MSI chairman RC Bhargava said that on April 1, 2020, we will not sell diesel cars. Currently the company sells many models of diesel vehicles. Diesel vehicles account for about 23% of the vehicles sold by the company in the domestic market.
Company Chairman RC Bhargava said that from April 1, 2020, he will stop selling diesel engine cars in a phased manner. The company expects this gap to be easily filled with cars of petrol and CNG versions.
Due to closure of diesel cars, the company is focusing more on CNG and petrol cars. In the year ended March 31, 2017, Maruti sold 17.53 lakh units in the domestic market, compared to last year’s 6.1% growth.
In the beginning of this week, Maruti Suzuki has launched its popular model Balino and Alto Hatchback. In fact, the Maruti Suzuki company sells many models of diesel engines including S-cross, Siaz, Vita Braja, Desire, Baleno and Swift in India.
It is worth mentioning that the BS-6 emission rules are going to be implemented from April 1, 2020. After which the government is going to impose strict rules on diesel cars. In this case, Maruti has decided to shut down diesel cars.
In the fourth quarter of fiscal year 2019, Maruti Suzuki’s profit declined by 4.6 per cent to Rs 1,795.6 crore. In the fourth quarter of fiscal year 2018, Maruti Suzuki’s profits were Rs 1,882 crores. During this period, the company’s earnings increased by 1.4 percent to Rs 21,459.4 crore, from Rs 21,165.6 crore in the corresponding quarter a year ago.
The company said that during the quarter, it had to face adverse foreign exchange rates, high prices of commodities, high depreciation. At the same time, spending on his promotional campaign also increased. Partial compensation was made by cost reduction efforts.
Meanwhile, Maruti Suzuki India Company has announced to invest Rs 4,500 crore in the current financial year 2019-20. The company’s chief financial officer (CFO) Ajay Seth said that this new investment will be done on various initiatives like acquisition of land for the development, research and development and sales network of new products. Maruti Suzuki had kept an amount of Rs 4,000 crore for investment in 2018-19.