Technology

Maruti Suzuki: Maruti ED on SUVs, CNG vehicles, fuel prices and business in the Covid era

Shashank Srivastava, ED, tells ET Now about the potential business resets, demand scenes, and third wave impacts caused by Covid. Edited excerpt:


By when do you expect local market demand to fully recover?
That is a very difficult question. As you know, cars are any product. It is also a very large item product. This is probably the second largest purchase in my life in India. Therefore, future demand generally depends on the economy — per capita income growth and sentiment.

As the RBI has shown, per capita income growth is expected to be around 10-15%, below budget figures of around 14%. After the second wave, expectations for economic growth fell.

Local sentiment at this time of the year is a bit more negative than last year. However, the economic fundamentals of rural areas remain strong. Therefore, there may be a good bounce. Human emotions are very temporary.

However, due to these uncertainties, OEMs are a little worried about making future predictions at this time. People are talking about the third wave.But unless there are emotions associated with COVID Even if it becomes negative, bounce back may occur.

Are you wary of the possible effects of the third wave on Marti?

Of course, you need to be careful. This pandemic taught us that nothing can be considered given. The virus seems to be capable of astonishing almost all professionals.

So we don’t predict if the waves are there or their range. But our factory takes into account the possibility of another wave.

Please tell me a picture of the inquiry level from new customers and the inventory level of the system.

The level of inquiries is improving. Last week’s level was about the same as at the beginning of April. I think that’s pretty good.

When outlets are closed, such as on weekend blockades, there is a natural downturn. That said, more and more states are unlocking, so it looks like inquiries and bookings are coming back.

When Fuel price So expensive, how do you see CNG Vehicle demand?

Running costs and fuel efficiency are important criteria for Indian buyers. Using CNG can save you a lot of money. What’s more, the availability of CNG is much better. So we have good traction in that respect.

A few years ago, we manufactured about 100-1,000 CNG vehicles a year. But last year we did something like 1,58,000-1,60,000. We expect CNG sales to be approximately 250,000 units this year.

How is the EV space going? Do you have a timeline?

We cannot provide a clear timeline for future product plans. We usually don’t talk about future product plans.

The proportion of electric vehicles sold not only in India but worldwide is still very small. The main reason is that the cost of acquiring an electric vehicle is very high, mainly because the cost of the battery is very high. Second, there is also a distance limit per charge.

Cheaper technologies, one of the fundamental obstacles to EV progress, are currently unavailable. Another major factor is the lack of charging infrastructure. There is still little confidence among consumers about EVs.

What are your SUV plan ideas?

why Marti We can maintain a high market share of nearly 50% to provide what consumers want. We place a great deal of emphasis on consumer satisfaction and the value we provide to them.

In hatchbacks, the market share is 65-66%, in sedans it is almost 50%, in PV it is currently over 60%, and in vans it is 90-95%.One area that seems to be a weak area for us SUV.. Again, at the entry level, he sits quite a bit with Breza, the number one model in the entry-level SUV segment.

The mid-SUV segment with Seltos and Crete has an S-cross. Our number is not very large yet. We are very aware of this fact and are watching this SUV segment very carefully.

What is the plant utilization at the current level? Could you update on the issue of semiconductor shortages?
I think this year is in a better situation than last year. Last year, demand was chasing supply. I think that supply and demand are almost the same this time.

After the factory closed in April due to oxygen problems, production resumed on May 17. Maintenance was suspended from June to May. Since the reboot, we have been growing rapidly. Currently, the utilization rate is quite high.

There is a global shortage of semiconductors. Maruti managed production well, primarily because of the benefits of its large portfolio of different vehicles with different levels of semiconductors. If a particular type of semiconductor is not available in a particular variant, we will produce more semiconductors. This is a luxury not found in many Indian manufacturers.

It’s a great place for supply chain people to comment, but it’s said that semiconductor supply is a global issue and needs to be resolved within the next few months. So I hope the situation will normalize for a while.

https://economictimes.indiatimes.com/industry/auto/auto-news/maruti-ed-on-suvs-cng-cars-fuel-prices-business-in-the-times-of-covid/articleshow/83744619.cms Maruti Suzuki: Maruti ED on SUVs, CNG vehicles, fuel prices and business in the Covid era

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