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    Maruti Suzuki to phase out all diesel vehicles from April 2020

    Maruti Suzuki to phase out all diesel vehicles from April 2020

    Maruti Suzuki to phase out all diesel vehicles from April 2020
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    By Anu Sharma   IST (Updated)

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    India's largest carmaker Maruti Suzuki India Ltd will phase out all diesel vehicles from April 1, 2020, R. C. Bhargava, chairman of the company, said on Thursday. The prices of diesel cars are set to be substantially higher than the petrol and CNG models with the implementation of Bharat Stage-VI fuel emission norms and hence, are not likely to attract consumers, Bhargava added.

    India's largest carmaker Maruti Suzuki India Ltd will phase out all diesel vehicles from April 1, 2020, R. C. Bhargava, chairman of the company, said on Thursday.
    The prices of diesel cars are set to be substantially higher than the petrol and CNG models with the implementation of Bharat Stage-VI fuel emission norms and hence, are not likely to attract consumers, Bhargava added.
    The company plans to assess the customer feedback to diesel cars of competitors in the BS-VI era and will then take a call on resuming production of BS-VI diesel vehicles.
    The statement is very important as diesel accounts for a substantial percentage of the Indian automobile sector, in which almost every second car is a Maruti Suzuki model.
    Taking note of uncertainties in crude oil prices, impact of general elections, a downturn in market and impact of price hike post-BS-VI, the company has also decided to cut its sales and production target for the financial year started April 1 to 4-8 percent from double-digit earlier.
    The company's fourth-quarter net profit, which was announced on Thursday, declined 4.5 percent to Rs 1,795.6 crore from Rs 1,882.1 crore in the same quarter last year.  The company’s total revenue rose to Rs 21,459.4 crore in the quarter ended March 31 from Rs 21,165.6 crore in the year-ago quarter.
    Overall, the rural markets are expected to grow faster than the urban market.
    For the full financial year ended March 31, the rural market grew at 10 percent with 2 percent growth in Jan-March while urban market growth was negative 8 percent in the March quarter. Overall, the urban market reached a negative 2 percent in the financial year ended March 31.
    The company currently has cash reserves of more than Rs 34,000 crore and has planned a capital expenditure of Rs 4,500 crore for the financial year 2020.
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