Maruti Suzuki India Ltd. expects to clock double-digit growth in sales volumes over the next five-six years, Chairman R.C. Bhargava told shareholders at the annual general meeting on Tuesday.
The Indian auto industry at large will also grow in double digits during the period, Bhargava said. Volumes for the company that sells half the passenger vehicles in India rose 10.6 percent in the year to March and 16.2 percent in the April-July period.
Replying to a shareholder's question, Bhargava said the company won't hold back on electric technology and was working on needs and preferences of buyers in the segment.
As soon as we determine the customer preference, we will come up with such models.R C Bhargava, Chairman, Maruti Suzuki
The government has incentivised electric cars by taxing them at 12 percent compared to a minimum levy of 43 percent on other passenger vehicles. India aims to make all vehicles electric by 2030.
Yet, GST hurt Maruti Suzuki's hybrid plan as such vehicles are taxed at the highest tax rate and attract the maximum cess. Bhargava had raised concerns about the high tax rate on hybrids, which run both on conventional fuel and electric power.
Commenting on the possibility of a bonus issue, Bhargava said the company had issued healthy dividends, and that it needed cash in its reserves to be ready for adoption of new-age technologies. Maruti Suzuki had issued a final dividend of Rs 75 per share in April.
Maruti Suzuki was on track to meet the sales target of 2 million units by 2020, and would see sales of 2.5 million to 3 million cars in the future, Bhargava said. Suzuki Motor Corp. Chariman Osamu Suzuki, Chief Executive Officer Toshihiro Suzuki, and the Managing Director of the Indian subsidiary, Kenichi Ayukawa, were also present at the AGM.
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