Maruti to wait for 'greater demand' for EVs before entering segment: R.C. Bhargava

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New Delhi, Oct 27 (IANS) Automobile major Maruti Suzuki will wait for electric vehicle demand to accelerate fruther before entering into the segment, its Chairman R.C. Bhargava said on Wednesday.

At a virtual event on auto maker's Q2FY22 financial results, Bhargava said: "Volumes of EVs are in 100s and they leave us a little bit less excited. If, I start to sell EVs then I do like to sell maybe 10,000 EVs in a month or something like that."

"If I am selling 2 million cars a year, then does it make sense for me to sell less than 100,00 cars a year. I have to have a car which is more sellable. There has to be a greater demand for the product."

However, he said that depending on market conditions, charging infrastructure availability and battery prices, the company, might launch an EV before 2025.

"We never announced that we were launching an EV commercially anyway. I don't know when we will release one, but it may come before 2025."

"It all depends on factors market conditions like how the infrastructure is built up, pricing of electric batteries etc. Costing is not in our hands. Batteries are scarce because there is a global demand for batteries."

On Wednesday, Maruti Suzuki India reported a decline of over 65 per cent in its Q2FY22 net profit on a year-on-year basis.

Net profit fell to Rs 475.3 crore during the quarter under review from Rs 1,371.6 crore in Q2FY21.

However, the company's net sales for the quarter under review rose to Rs 19, 297.8 crore from Rs 17,689.3 crore earned in Q2FY21.

"The company sold a total of 379,541 units during the quarter constrained by a global shortage in the supply of electronic components," the auto major said in a statement.

"Sales in the domestic market stood at 320,133 units. Exports were at 59,408 units, the highest ever in any quarter."

--IANS

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