Close [X]

I dont think we are creating car capacities anymore: R C Bhargava

Maruti Suzuki's combined capacity in Gurgaon and Manesar plants stands at 1.5 million units per year. Next year the first phase of 750,000 units per year Gujarat plant will come on stream. But Suzuki is holding talks for another plant based in Haryana. R C Bhargava, Chairman, Maruti Suzuki talks to Swaraj Baggonkar on the sidelines of the Make in India week about expansion and and other issues such as holding diesel responsible for pollution. Edited excerpts. 

Would there be some capacity constraints coming up?
There may be some temporary shortages in capacity. Because Gujarat is coming up and next year around this time we should be commissioning the first unit in Gujarat and we taking some improvised measures in Gurgaon to increase production till that happens.

How much could be the increase?
Our target for 2015-16 was around 1.4-1.5 million. We should be finishing somewhere close to that. Next year we will be getting to almost 1.6 million or may be a little below that, I am not sure what the target is.

Is Suzuki talking to Haryana government for a new plant?
It is between Suzuki and Haryana (government). I don't think we are creating any more car manufacturing facilities anywhere at this time.

What is the plant all about then?
We are still working out what the implication of this diesel policy will be for future demand and whether you will need more petrol engine capacities in what have been planned. That is still to be worked out fully.

Diesel in coming under scrutiny, where do auto companies head from here?
Euro 6 diesel is as good as any other fuel. Euro 5 lags behind because the state-run oil companies did not invest in upgrading to that kind of fuel earlier. So its being delayed. But has happens in most such things somebody does some things somebody else bears the consequences. That's what is happening here also.

Do you feel diesel is being unjustly targeted?
If you look at the contribution of diesel to the particulate emission in Delhi it is being unfairly targeted. Because the contribution of diesel to the total 2 per cent of cars, of which petrol may be 0.3 per cent, 0.7 per cent is by diesel. So what about the remaining 98 per cent?

What is your anticipation for industry growth?
We have not done budgeting yet for the coming year. But if double digit (growth) is not possible then may be around 8-9 per cent (growth) we should be able to do.