EVs Not Sole Path To Net-Zero Goal, Says Maruti Suzuki Chair Bhargava

"RC Bhargava, chairperson of Maruti Suzuki India Ltd., is not convinced on the electric-vehicle landscape, without which he says the company cannot meet carbon-emission and other norms that are part of the planning process for any launch. He underscored that the automobile company does not want to be driven by just one technology as it looks at multiple new options.'Electric cars by themselves are not the (only) answer to reach the goal that the government has set to reach zero-carbon emissions,' Bhargava told NDTV Profit in an interview.The chairperson sees biogas as an alternate clean-fuel technology as well and pointed out that biofuel has a huge potential. He said biogas offers clean and economically worthwhile option for smaller cars..Revenue up 19% at Rs 38,235 crore (Bloomberg estimate: Rs 38,459.5 crore).Net profit up 48% at Rs 3,878 crore (Estimate: Rs 3,839.2 crore).Declared dividend of Rs 125 per share.Ebitda up 40% at Rs 4,685 crore (Estimate: Rs 4,940 crore).Margin at 12.3% vs 10.5% (Estimate: 12.8%). .Maruti Suzuki Q4 Results: Profit Up 48%, Meets Estimates.The small and the mid-car segment was down 11% in the last financial year. Bhargava sees challenges in the first-time buyer segment, which is a key buyer for small cars. He highlighted that the demand for smaller cars will roughly remain the same as the last fiscal.Demand for sports utility vehicles is expected to remain strong and he does not expect the market for the same to change so fast. Bhargava expects similar customer and demand revival in the small car segment but not anytime sooner than fiscal 2026.The SUV share should give bulk of the growth this fiscal. The company is expecting some growth in the sedan and upper hatchback segment, while exports are expected to cross 3 lakh vehicles this fiscal..Maruti Suzuki Q4 Results Review: CNG To Drive Sales Growth In FY25.Bhargava highlighted that the margins showed growth due to commodity prices remaining benign this year, while also foreign exchange remained favourable.He was hesitant about commenting on margins going forward since many factors not within company control. The chairperson will be looking at how the currencies, including the yen and the dollar, perform. It has benefited from the efficiency of operations within the company as well..Maruti Suzuki has announced a final dividend of Rs 125 per equity share for the fiscal 2024, 40% higher in comparison to the previous fiscal. Bhargava indicated that this is a 30% payout as per the dividend policy of the company and it could have been higher as well.The auto major wanted to give a dividend that would be sustainable. The shareholders tend to expect a similar payout in dividends, which it may not be able to give and, hence, it is trying to keep a balanced and a sober approach, according to Bhargava..The compressed-natural-gas segment is a higher-margin business for the company, which is expecting to sell around 6 lakh CNG vehicles this fiscal in comparison to 4.5 lakh in the previous, Bhargava said.New capacities in Manesar, Haryana, of about 1 lakh units will aid in debottlenecking this segment. It is expecting to commercialise an additional 2.5 lakh units in Gujarat by fiscal 2026, according to Bhargava.He underscored that there had been concerns on built-up inventory over the past quarter, but the management laid those to rest. The chairperson does not see a mismatch as the dealers are actually required to keep a month's inventory, without which they won't be able to fulfil customer orders within a few days itself.He pointed out that dealer commissions include the interest payments for keeping this inventory, highlighting that this is lower than the company's monthly sales of about 1.5 lakh units lately..The industry veteran highlighted that Maruti Suzuki has not gone wholeheartedly in electric vehicles despite the craze. He sees options for smaller cars is less, while hybrids do not offer many options too.He expects customers to gravitate towards cheaper options as the EV infrastructure is not developed. Maruti Suzuki's strategy has been to offer the CNG engines for hatchbacks and upper-class hatchbacks with Ertiga a key model in this space.For a large adoption of hybrids, Bhargava said, the government would have to take the first step forward by lowering the tax from the current 43%. The chairperson expects other players to enter this space once there is some movement on lowering the current tax structure. He is keen on seeing what level of cars are 'hybridised' and to what extent. Suzuki is developing the EV technology on larger cars, which is fructifying and the company's upcoming launch will be in the 'upper end of the market', Bhargava said. However, he was quick to highlight that they need further breakthrough in technology for wider adoption. .Maruti Suzuki Q4 Results Review - Operating Performance Misses Estimates: Motilal Oswal"

EVs Not Sole Path To Net-Zero Goal, Says Maruti Suzuki Chair Bhargava

Maruti Suzuki's RC Bhargava expects customers to gravitate towards cheaper options as the EV infrastructure is not developed.

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EVs Not Sole Path To Net-Zero Goal, Says Maruti Suzuki Chair Bhargava

Maruti Suzuki's RC Bhargava expects customers to gravitate towards cheaper options as the EV infrastructure is not developed.

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