Maruti Suzuki will phase out all the diesel cars from April 1, 2020. The company runs 23% of its sales from diesel cars. It expects to drift potential buyers to petrol or CNG cars by offering incentives, and also providing CNG options in more models.
“From April 1, 2020 we will not be selling diesel cars,” Maruti Suzuki India Chairman RC Bhargava told reporters during the post-results press conference.
Maruti sold a total of 17.53 lakh units in the domestic market in the year ended March 31, a growth of 6.1%. This comprised 17.29 lakh units in the passenger vehicle segment and 23,874 units of LCV. Exports were at 108,749 units.
Earlier this week, Maruti Suzuki Ltd launched its popular Baleno and Alto hatchbacks with engines compliant with the Bharat State 6 emission norms, a year before the new norms will be introduced. Maruti is also expected to launch the Dzire and Swift with BS 6 compliant engines in the next few months.
The carmaker also announced a hike in prices of some of its models today. Maruti has increased prices of Baleno diesel range and RS petrol variant by up to ₹15,000 (ex-showroom) with immediate effect. The Baleno RS, which comes with a 1 litre booster jet petrol engine, will now be available at ₹8.88 lakh, Maruti said in a regulatory filing. It was earlier priced at ₹8.76 lakh.
Maruti Suzuki today reported a fall in net profit for the fourth quarter ended March 31, hurt by industry-wide weak demand. The carmaker’s net profit fell by 4.6% to ₹1,795.6 crore. The Street had estimated the automaker to post a net profit of ₹1,747 crore for the quarter. This quarter was marked by adverse foreign exchange rates and commodity prices, higher depreciation and higher sales promotion expenses, partially offset by cost reduction efforts, the company said.
During the quarter, Maruti registered net sales of ₹20,737.5 crore, up by 0.7% over the same period previous year.
The board of directors recommended a dividend of ₹80 per share.
Maruti also forecast a weak rate of growth for the current fiscal year amid an industry-wide weakening of demand. The country’s biggest automaker, majority owned by Japan’s Suzuki Motor Corp, said it expected production and sales to grow between 4% and 8% for the financial year started in April. Last year, the company targeted a 10% rate of growth for sales.
The carmaker said it has earmarked a capex of ₹4,500 crore for the current fiscal. The investment will go into various initiatives, including new product development, R&D and land acquisition for sales network, MSI CFO Ajay Seth told reporters here. MSI had earmarked a capex of ₹4,000 crore for 2018-19.