RC Bhargava says Maruti will never forget needs of Indians who cannot afford expensive cars
"We have believed that the company will benefit most if, while enhancing its competitiveness, the economic and social needs of society are also met to the maximum extent possible," said RC Bhargava, chairman, Maruti Suzuki India Limited.
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At a time when SUVs are finding many buyers in India, Maruti Suzuki India Limited's Chairman RC Bhargava emphasized that the company will not disregard the needs of budget-conscious buyers and will continue efforts on low-cost small cars as well.
"We have believed that the company will benefit most if, while enhancing its competitiveness, the economic and social needs of society are also met to the maximum extent possible," Bhargava said in the auto major's annual report.
He added, "Thus, our continued efforts to manufacture low-cost small cars have been in recognition of the economic condition of a large majority of citizens and their aspiration to own a comfortable and safe means of transport."
Bhargava said, "Even as we produce more SUVs and higher cost cars to cater to a different market segment, we will never forget the needs of the large numbers who cannot afford expensive cars."
The passenger vehicle market has seen sustained growth momentum in Q1 FY25, however, small car sales continue to be on a downswing. During April-June, Maruti Suzuki sold 2,22,193 units of passenger cars, witnessing a 12.8 percent year-on-year decline against 2,54,973 units in the same period last year.
Bhargava stated that MSIL was the first company to start the production of CNG cars because they were more economical than petrol cars as well as environmentally cleaner: “They suited users with limited incomes and also met environmental objectives. With the government giving high priority to building infrastructure for CNG distribution, the sale of CNG cars has been rising and we expect to sell about 600,000 such cars this year."
Bhargava also said that Maruti is the first company to extend its sales and service network to rural areas and small towns. "The intention was that people in these areas of the country should get facilities similar to what was available to those dwelling in large cities. Now about 46% of our sales come from rural areas," he noted.
The Maruti chairman said, "Your Company has been the industry leader since 1986-almost for 40 years. Two generations have consistently placed trust in the Maruti brand. I believe that one of the main reasons for this has been we have always endeavoured to align our strategies and policies with national priorities and societal needs."
