Maruti Suzuki India (MSI) is pushing the government's electric vehicle agenda with plans to release models based on customer preferences, said a PTI report on Tuesday, quoting MSI Chairman R C Bhargava.
The auto major, which has around 50 per cent of the market share in the Indian passenger vehicle segment, also expects its sales to grow in double digits over the next 3-5 years, the report said.
Bhargava told shareholders at the company's 36th annual general meeting (AGM) that the government's programme to rapidly promote the use of electric vehicles in India is a very laudable policy. He felt that it would greatly enhance the usage of electric vehicles in the country and lead to a cleaner environment over time.
The government has lowered GST rates on electric cars from 20.5 percent to just 12 percent, the lowest for any form of powered transportation solution.
MSI had announced plans earlier this year for a massive lithium ion battery manufacturing facility in India along with OEM suppliers Denso and electronic giant Toshiba, which will make components for the Maruti Suzuki electric car project.
"Your company will not hold back in the segment. As soon as we can determine the customer preference we will come up with such models. In the meantime, focus will be to increase fuel efficiency (in current models) and bring in new technologies," Bhargava told shareholders.
In the next 3-5 years, India's auto industry should grow in double digits, he said in response to shareholder queries on growth prospects. "I am fairly confident that Maruti, with the support of Suzuki, will certainly grow in the double digits," the report quoted Bhargava as saying.
Bhargava said the auto industry is a good barometer to measure changes in the economy. "I, for one, am a firm believer that all the structural changes in the past three years will create a basis for much faster growth of the economy in the future," he said.
Bhargava said that growth in the economy would lead to fresh spurt in demand for cars in the country, and help the company to achieve its target of selling 2 million units by 2020 and a further 2.5 million and 3 million cars going ahead.
He said that current demand is being curtailed by infrastructural shortages. While highways are getting built, urban infrastructure building is lagging behind in most parts of the country, he said.
He said in response to a shareholder's suggestion that the company should look at entering defence production, that "it is something which needs to be carefully thought about".
To a demand by a shareholder to issue bonus shares, Bhargava said that the purpose has been met to a larger extent this year by more than doubling the company's dividend payout.
Suzuki Motor Corp Chairman Osamu Suzuki was given a standing ovation by shareholders at the AGM.
