India's small car segment market continues to become smaller in the passenger vehicle industry. Maruti Suzuki India will continue to put efforts into manufacturing low-cost small cars for budget-concerned buyers, said RC Bhargava, Chairman of Maruti Suzuki India Limited, reported Moneycontrol first quoting the company's annual report for the financial year 2023-24 on Sunday, August 4.
"We have believed that the company will benefit most if, while enhancing its competitiveness, the economic and social needs of society are also met to the maximum extent possible," said Bhargava in the shareholders' note.
Bhargava also said that the company's continued efforts to manufacture low-cost small cars to cater to the economic condition of the country and the aim of the citizens to be able to own a safe and comfortable car.
The passenger vehicle (PV) market saw overall growth, but the small car segment saw a downtrend. Maruti Suzuki sales in the PV segment for the April to June quarter was 2,22,193 units, a 12.8 per cent fall compared to 2,54,973 units in the same quarter the previous year, said the report.
The chairman also highlighted the company's service network goal as he claims to be the first one to reach rural areas and small towns, as per the report.
"The intention was that people in these areas of the country should get facilities similar to what was available to those dwelling in large cities. Now about 46% of our sales come from rural areas," he said in the note.
Maruti Suzuki is waiting for a government policy framework which helps promote all green technologies, covering strong hybrids to replace fossil-fueled vehicles in order to reduce carbon emissions, as per the report.
"It is also clear that pure petrol and diesel cars are the worst in terms of carbon and greenhouse gas emissions and fuel consumption. Therefore, while electric car use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG, or ethanol and biogas,” said Bhargava.
Bhargava claimed that hybrid cars increase 35 to 45 per cent fuel efficiency and reduce 25 to 35 per cent greenhouse gases and carbon emissions. CNG cars are not as clean as hybrids, but better than fossil fuel-driven cars, as per the report.
Maruti Suzuki has signalled its plans to bring in strong-hybrid technology in their cars in the coming six to seven years; the brand is also working with EVs, flex-fuel, etc., said the report. The company is set to launch its electric cars in the coming months, according to the report.
Maruti Suzuki India has started its trials to produce biogas and is looking towards government policies to increase the efficiency of the development of this fuel, as per the report.
“We are also working on modifying car engines to use petrol blended with 20 per cent ethanol. Technology exists to enable cars to use higher amounts of ethanol," said Bhargava.
