New Delhi: Maruti Suzuki has decided to slow down on land acquisition for Rs 35,000 crore employed for another Rs 35,000 crore factory in Gujarat due to a poor increase in car sales. The purpose of this factory was to take the company’s production capacity to four million (40 lakh) units by 2030-31.
Asked if the company has gone slow on the project, Maruti president RC Bhargava said, “But there is no delay, (but) there is no hurry to do anything because the market growth is 1-2%. Why will I put another million units in a hurry? There is no need in the market.”
Bhargava said that Maruti has adequate expansion work in its current factories in Haryana and Gujarat. “I have enough ability to come to Kharkhoda (Haryana). Some are coming to Manesar, (and) some are coming to the first plant in Gujarat. There is no hurry about the second plant in Gujarat. The site is not yet finalized. ,
The disappointing mood in the country’s largest car manufacturer highlights anxiety in the broader car industry. The industry enjoyed a strong growth in the-coved period, but rapidly getting difficult as high prices of vehicles and uncertainty around the economy and stock markets, keeping buyers away.
Companies are confident in new investment schemes as they fear that more and more businesses may be harassed if the recession remains.
Bhargava said that the construction of a new segment of Kickstart demand, entry-level cars requires the support of the government-smaller than the Alto. This, he said, he will motivate more two-wheelers to upgrade to cars, something that is not in the form of car prices today, even in the entry segment, the government’s mandate on security and emissions has increased by about Rs 90,000.
“Japanese is an example of Kai cars. They have different sets of rules compared to other cars and taxes (on them).
He said that it is quite challenging to develop an excessive-body mini car, even for mass-builders like Maruti, and thus the support of the government is required. “Today no one can develop at that price, not even sugar.”
Whether or not the Income Tax Relief in the Union Budget will help increase the sales of the car, he said it seems difficult because the car prices have increased to a great extent and people will also use additional income for other domestic work. “People have other expenses and will not use it (income tax relief) to buy cars. They have other priorities.”
