One out of two cars in India is a Maruti: CNG to be prioritized over EVs in short-term

Maruti Suzuki said that it is working with petroleum companies to expand the network of filling stations in favour of CNG vehicles. The company's market share is now close to 50% which means every one out of two cars on Indian roads is a Maruti.

By: | Updated: April 27, 2018 4:43 PM

Country's leading car maker Maruti Suzuki has just announced its results for FY2017-18 and Q4 2018. The FY2017-18 has been positive for the manufacturer as it ended the fiscal with a growth of 13.4%. During the period, Maruti Suzuki sold a total of 17,79,574 vehicles out of which 16,53,500 cars found new homes in India while 1,26,074 units were exported to the global markets. The rural markets played an important role in the sales of Maruti and the contribution from such regions accounted for 36% of total sales in FY 2017-18. Maruti Suzuki also announced that its total market share has increased by 2.7% and the figure is now close to 50% in India. Speaking of the net sales, the figure stood at 7,81,048 million units in FY2017-18 and the company registered a growth of 16.7 percent.

The operating profit for Maruti Suzuki stood at Rs 93,036 million, thereby registering a growth of 20.1 percent over the same period last year. The company says that this is all thanks to higher sales volume and cost reduction efforts. The net profit for the year stood at Rs 77,218 million and the figure is upped by 5.1 percent. The net profit was impacted by an increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus as compared to last year.

Watch our new Maruti Swift video review here:

The waiting period now is also on four Maruti cars and it has gone down since the beginning of the current calendar year. In order to be specific, the current waiting list of Maruti has 1,10,000 people. In order to meet the demand in a better way, amid production constraints and high demand, Maruti Suzuki has announced that it will make temporary arrangements at the Gurgaon plant to produce extra vehicles.

Now, coming to the quarterly performance of Maruti Suzuki, the manufacturer sold a total of 4,61,773 cars during the period January to March 2018. By doing so, the company registered a growth of 11.4 percent over the same period last year. Out of this, while the domestic sales stood at 4,27,082 units, 34,691 units were exported outside India.

Also Read: Why people in India don’t use seat belts and the illogical and thought-provoking reasons behind it

The operating profit for Maruti Suzuki during the said period was 23,125 million, which is 24.4% more than the figure during the same period last year. The net profit of the company rose by 10% at Rs 18,821 million when compared to same period last year.

Maruti Suzuki also announced that CNG cars will be prioritized over electric vehicles in the short term. R.C. Bhargava, Chairman, Maruti Suzuki said that the manufacturer is currently working with petroleum companies to come up with more filling stations in favour of CNG vehicles. Currently, many people refrain from buying CNG cars due to the long queues outside filling stations and hours of wait that people have to do just for one refill. The benefits of CNG vehicles are also similar to that of EVs as they not only emit much lesser pollution than conventional petrol cars but also reduces dependency on the oil imports.

When looking at the diesel petrol share, the ratio for Maruti Suzuki is currently 29:71. The company has also stated that the diesel share for the overall passenger vehicle segment has come down to about 35% from a high of more than 60% a few years back. With the introduction of stricter BS-VI emission norms in the year 2020, the sale of diesel vehicles will further get reduced.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop