MANAGEMENTS MUST CUT PERSONAL EXPENSES, SAYS BHARGAVA
Maruti will enter EVS only when profitability is certain: Chairman
I AM QUITE CLEAR THAT IF A STRONG INDUSTRIAL BASE HAS TO BE BUILT IN INDIA, THE AUTO INDUSTRY AND THE CAR INDUSTRY HAVE TO REACH DOUBLE-DIGIT GROWTH LEVELS... AT PRESENT THE CONDITIONS DO NOT PERMIT THAT WE HAVE IT
R C BHARGAVA, Chairman, Maruti Suzuki India
Company managements need to “curtail the kind of expenditures on themselves personally” with the Covid-19 pandemic highlighting the need to build internal resources with a frugal style of functioning, Maruti Suzuki India Chairman RC Bhargava said on Tuesday.
Addressing shareholders in the company's annual general meeting held virtually, he also termed as "a good development for the whole of industry" recent shareholder actions that did not approve expenditures by management on themselves, without specifying details.
In the wake of the pandemic, building internal resources has to become a priority of industry and companies. It requires companies to have a more frugal style of management, he said.
"Management themselves need, I think, to curtail the kind of expenditures on themselves personally. Recent shareholder action seems to suggest why a section of shareholders share this view and are voting on these lines and I think that's a good development for the whole of industry,” Bhargava said without elaborating.
Bhargava, who had in the past stated that the high tax regime is slowing down car demand, reiterated the need to address the issue. “I am quite clear that if a strong industrial base has to be built in India, the auto industry and the car industry has to reach double digit growths and at present the conditions do not permit that we have it,” he said.
Chip shortage temporary
“The shortage of semiconductors is a temporary problem partly due to Covid. Our estimation is that this shortage problem will be over by 2022,” Bhargava said while responding to a query by a shareholder.
He also said Maruti Suzuki India has outlined a capex of ~4,500 crore in the ongoing fiscal for its various business purposes but the actual expenditure will be known only at the end of the year.
On the company’s plans for EVS, he said Maruti Suzuki is the leader in the conventional car industry and the its intention is to achieve leadership position even in the EV sector in future.