New Delhi: The high cost of acquisition due to several reasons including higher GST as compared to all other major countries is slowing down the demand for the car in the country and unless the Center and the states take steps to reduce it, the industry will have due experience. is not likely. increase, according to Maruti Suzuki India President RC Bhargava.
Addressing shareholders in the company’s annual report for 2020-21, he said that after the devastating second wave of the coronavirus pandemic in the first quarter of FY22, the performance in the next three quarters would largely depend on whether people How to effectively vaccinate and follow safety protocols. .
“In March 2021, we were quite optimistic about the outlook for FY2021-22. The suddenness and speed of the second wave of the pandemic came as a surprise to all, and led to the imposition of lockdown and restrictions in most parts of the country,” he wrote . .
Production and sales fell again and the recovery that started in the previous quarter took a beating. Bhargava said Q1 sales were limited at 3,53,600 units.
Emphasizing that the future outlook depends on how the virus is contained, he said, “Performance in the next three quarters will largely depend on the compliance of all our citizens with vaccination and protection protocols.” How effectively do you follow the advice of the government to do so?
Bhargava further said, “If we can avoid the third wave, or reduce its impact to a great extent, and there is no further wave, then economic activity and car sales should improve significantly compared to last year. could.”
He also attributed the decline in demand for cars “largely because the cost of acquisition by consumers has gone up due to various reasons levied by regulatory changes, depreciation of rupee, increase in raw material cost and taxes. state governments”.
“GST on cars, based on previous rates of excise duty, is much higher than GST (or equivalent) in all other major countries of the world. It is unlikely that the car industry will experience reasonable rates of growth unless the central And the state governments consider how to reduce the initial acquisition cost of the car,” Bhargava said.
So far, maruti suzuki India’s Managing Director and CEO Kenichi Ayukawa said the growth in the second half of 2020-21 was followed by a major contraction in Q1 due to COVID-19 as “demand for cars also followed the path of economic recovery”.
“The increased demand for cars was driven by increased customer preference for personal mobility and good demand from non-urban markets,” Ayukawa wrote in his address.
On the road ahead, he said, “Although the country is passing through tough times, its economic prospects in the medium term appear promising. With the support of SMC In terms of relevant products and technologies, the company will continue to work on all competencies to capitalize on the opportunities.”
Further, SMC, in its recent mid-term plan, indicated to introduce relevant products such as utility vehicle (UV) to strengthen it. msiAyukawa said the product line-up, promoting the penetration of hybrids and the introduction of electric vehicles.
“Partnership Between” suzuki motor corporation And Toyota Motor Corporation This will help the company gain access to hybrid technology.”
Addressing shareholders in the company’s annual report for 2020-21, he said that after the devastating second wave of the coronavirus pandemic in the first quarter of FY22, the performance in the next three quarters would largely depend on whether people How to effectively vaccinate and follow safety protocols. .
“In March 2021, we were quite optimistic about the outlook for FY2021-22. The suddenness and speed of the second wave of the pandemic came as a surprise to all, and led to the imposition of lockdown and restrictions in most parts of the country,” he wrote . .
Production and sales fell again and the recovery that started in the previous quarter took a beating. Bhargava said Q1 sales were limited at 3,53,600 units.
Emphasizing that the future outlook depends on how the virus is contained, he said, “Performance in the next three quarters will largely depend on the compliance of all our citizens with vaccination and protection protocols.” How effectively do you follow the advice of the government to do so?
Bhargava further said, “If we can avoid the third wave, or reduce its impact to a great extent, and there is no further wave, then economic activity and car sales should improve significantly compared to last year. could.”
He also attributed the decline in demand for cars “largely because the cost of acquisition by consumers has gone up due to various reasons levied by regulatory changes, depreciation of rupee, increase in raw material cost and taxes. state governments”.
“GST on cars, based on previous rates of excise duty, is much higher than GST (or equivalent) in all other major countries of the world. It is unlikely that the car industry will experience reasonable rates of growth unless the central And the state governments consider how to reduce the initial acquisition cost of the car,” Bhargava said.
So far, maruti suzuki India’s Managing Director and CEO Kenichi Ayukawa said the growth in the second half of 2020-21 was followed by a major contraction in Q1 due to COVID-19 as “demand for cars also followed the path of economic recovery”.
“The increased demand for cars was driven by increased customer preference for personal mobility and good demand from non-urban markets,” Ayukawa wrote in his address.
On the road ahead, he said, “Although the country is passing through tough times, its economic prospects in the medium term appear promising. With the support of SMC In terms of relevant products and technologies, the company will continue to work on all competencies to capitalize on the opportunities.”
Further, SMC, in its recent mid-term plan, indicated to introduce relevant products such as utility vehicle (UV) to strengthen it. msiAyukawa said the product line-up, promoting the penetration of hybrids and the introduction of electric vehicles.
“Partnership Between” suzuki motor corporation And Toyota Motor Corporation This will help the company gain access to hybrid technology.”
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