Maruti Suzuki anticipates 6 per cent growth in fiscal 2013, amid January price hike

Wednesday 20 February 2013, 12:19 PM by

The county’s largest car maker, Maruti Suzuki India Limited (MSIL), had said that the recent price hike will not affect its current sales and rather the auto maker is expecting a growth of around 6 per cent in the ongoing fiscal, which will be ending on March 31, 2013. On the other hand, the Chairman of MSIL, R C Bhargava said that the cost of ownership can be little high, owing to the constant increase in the prices of fuel.

He added, “We think that this (fiscal) year Maruti will grow by about 5.5 to 6 per cent.” Speaking on any upcoming price hike on the cards of auto maker, Bhargava commented, “I don't see price hike taking place.”

It musty be noted that in order to welcome the New Year, Maruti Suzuki increased the prices in its entire product portfolio to an extent of Rs. 20,000. The reason cited behind this price hike stated that the auto maker was trying to compensate the adverse currency fluctuations. Expressing his views on the company’s future prospects, Bhargava said, “This year continues to be difficult for the sector. Next year, probably, the growth will be flat.”

He further added that although the auto loans have been reduced by 2 per cent, the demand for new models has not increased significantly. It is believed that the growth rate will not appear in a brighter side unless the Union Budget turns the tides in favour of auto makers. Commenting on the expectations from the Union Budget 2013, Bhargava said, “We are not in favour of sops but complete measures like GST (Goods and Services Tax) that will create a lot of good sentiments... We don't really get growth from sops because it will temporarily boost sales. But it cannot give long term industrial growth.”

Interestingly, he also said that the growth will also bank on the electoral results of 2014, “Because if you have a coalition government and driven by the same kind of coalition 'dharma' which the PM has mentioned then you will have difficult time again.” Speaking on the labour issues, Bhargava was quoted as saying, “If the economy and demand continues to be stagnant and industry finds it difficult to meet, it could give rise to more labour troubles. But if the economy picks up again, people will start getting jobs.”

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