Maruti Suzuki expects petrol-diesel sales gap to narrow fast
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With the gap between petrol and diesel prices narrowing with the rise in latter's rates, country's largest car-maker Maruti Suzuki expects petrol car sales to nearly match those of diesel models, according to a top official.
"We had always expected this to happen, because the diesel option constituted almost 70 per cent of the cars which had diesel, this was driven by artificial pricing. Since the pricing gap is coming down, we will expect diesel cars to come back to 40-50 per cent. I think we are getting there," Maruti Suzuki chairman R C Bhargava told reporters here on the sidelines of the annual convocation of the National Institute of Industrial Engineering last evening.
Stating that the current market condition is very depressed with decreasing sales, Bhargava said that sales driven by diesel cars last year have either come down or
"It is not only for us but even for players with strong diesel portfolio. Diesel cars have lost their attractiveness in the market. It will take time for the economy to revive. We see a 5-6 per cent kind of growth this year too," he said.
On the inventory side, Bhargava said he expects this to be corrected this month, adding that currently it is slightly higher at the dealership levels.
"The production of any model has to be adjusted according to the demand," he said.
Bhargava said the company will make it sure that it maintains its market pie at 40 per cent. "Competition is a given in today's age, you can not run away from it. All of
them will try their best, but the market is large enough for everyone to grow in the mid to long-term," the Maruti Suzuki chairman said.
The company has reported a 14.4 per cent decline in sales in May at 84,677 units as against 98,884 units a year ago.