Maruti Suzuki India Ltd. is positive that its lukewarm car sales will reverse in August, assigning the current slowdown to a higher base and periodic factors.
RC Bhargava, company chairman said, “it (fall in sales) isn’t a big worry at all as we’re going ahead with our expansion plans and investments, most people aren’t taking into account the effect of the higher base of extraordinary sales clocked in last April and May (last year) while making a year-on-year comparison.”
Bhargava said the slowdown was a “usual” pre-election year cyclical phenomenon that even occurred ahead of the 2009 and 2014 general elections. “The downturn has happened in every industry,” he said. “Sure, it has been slow but it’s not even been a year yet.”
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He also said, “I don’t think there’s any evidence says that the rural contradictions have changed for the worst anytime. The rural growth is still substantially higher than the urban areas and I expect the trend to continue.”