Despite worst performance in decades, Maruti set to bounce back in 2021
We all know that the Automobile industry across the globe is going through its worst scenario in decades and the brands around the globe can be seen affected due to it. Maruti Suzuki, India’s largest carmaker has also been sucked up in this scenario but as per R.C. Bhargava, Chairman of the company, the brand is hoping to bounce back to its usual rate of growth by 2021.
As per Mr. Bhargava, The brand is at the bottom of the downward cycle and the economy and the car sales would start to accelerate shortly. He also assured that the brand had no plans to retrench any of its permanent work-force.
Talking about the slowdown, he said, a bulk of the cars was bought by the middle-class consumers who did not have unlimited deep pockets in the past few months which turned into an increase in the final cost that the customer had to bear to buy a car. These also included the new safety norms leading to car prices going up by about Rs. 22,000, a transition to BS-VI, a rise in insurance cost and non-availability of finance.
Addressing the recent measures by the Finance Minister, Mr. Bhargava said to the media outlets, “The Finance Minister recently announced some measures, but I think it is necessary to understand that the growth of manufacturing, growth of the economy is not entirely the responsibility of the Centre. The State governments, I believe, have a larger role… They have much more to do with the cost of the operating industry. The taxation of State governments is quite high, for example, taxes on petrol”.
As per Mr. Bhargava, the company was committed to transition electric vehicles and the brand would soon churn out the best products for its consumers. The brand is completely involved in testing EV and they will soon conquer the advancement in technology but due to challenges such as battery technology and infrastructure limitations would result in electric vehicle acceptance by customers being slow in the short-term.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.