[wheelguy]

The scrappage policy for cars is not going to come into operation before 2024. A lot of discussions will take place with the government and the time is needed to create a fitness testing infrastructure, says MUL chairman.

Petrol prices by themselves are not necessarily as much of a damper on demand as the initial taxation on the vehicle when you buy a vehicle and on the terms of financing, says RC Bhargava, Chairman, Maruti Suzuki.

Petrol prices in various parts of the country have almost touched Rs 100 per litre. Is that something that worries you and could it dampen the demand going forward?

I do not know what will happen in the future because the prices of petrol and oil keeps fluctuating all the time and this time, it has gone up. We do not know what will happen in the future but all experience shows that petrol prices by themselves are not necessarily as much of a damper on demand as the initial taxation on the vehicle when you buy a vehicle and on the terms of financing.

As financing is available comparatively easily and the interest rates have become much better, I think people are willing to buy vehicles and the market today shows that customers are quite happy to buy vehicles even though petrol is over Rs 90 a litre.

Full interview

[VKumar]

Originally Posted by wheelguy

Customers happy to buy vehicles even though petrol is over Rs 90 a litre

That's Mr. R.C. Bhargava being Mr. R.C. Bhargava, and I am happy that he is behaving in an absolutely normal manner.

I, kind of like his approach towards the problems. His case is rather simple:

"Oh, there's an earthquake? Huge destruction too? Ya, my house is okay, others also should have built theirs better".

Originally Posted by ABHI_1512

Of course people are happy to buy new vehicles, I guess people are happy to eat as well despite prices of many essential commodities rising sharply !!

It has become the norm to ridicule the helplessness of the middle class people these days.

Very well said mate, would agree with your post - word to word. It is indeed the middle class which is facing the most of the heat of these taxes, then some more, and then some more of them!

[ABHI_1512]

Of course people are happy to buy new vehicles, I guess people are happy to eat as well despite prices of many essential commodities rising sharply !!

It has become the norm to ridicule the helplessness of the middle class people these days.

[Dry Ice]

I am shocked he didn't throw his trump card even once!

"Our customers are not affected as Maruti Suzuki makes the most fuel efficient cars in the country!"

If Safety is Tata's thing, FE is Maruti's. Wonder why he didn't pounce on this opportunity .

[SmartCat]

Looks like all of you missed this gem:

Question: The vehicle scrappage policy is coinciding with the auto sector coming out of the Covid-19 impact. Is the policy in the current form good enough to boost demand?

Answer: The biggest plus point for this policy is that it recognises the importance of maintaining vehicles properly. For the citizens at large, it is important that the vehicles are fit in terms of safety, in terms of environment and that has been recognised for the first time by the government and Mr Gadkari deserves kudos for having done that.

Oh the irony

2014 statement:
https://www.team-bhp.com/forum/road-...tatements.html

2019 statement:
https://www.team-bhp.com/forum/india...as-mantra.html (Affordability at the cost of safety - RC Bhargava's mantra!)

[Eshan Joshi]

For the citizens at large, it is important that the vehicles are fit in terms of safety,

A cultured man is what I see.

Maybe he should actually stick to his word and make an effort to make safer cars for the people of our country.

[lonetraveller89]

I know how we all like throwing rocks at the village idiot 'cos it's cool or whatever but what's wrong about this particular statement of his? A customer will always be happy buying a new car. Rising petrol rates don't matter to him as he is confident that no matter what, MSIL will still be selling enough cars. Ok, so it's a blunt, honest response. Or would you like it better if he sympathised with the consumer? Act like he cares when in all honesty, we very well know that none of them do.

Coming to the main topic of discussion (despite ET Auto using such a shameless, clickbait title ), this is the statement he made in the interview that I found interesting -

Are you saying that the industry is not okay with the 5% discount that the minister has asked the industry to give for the vehicles that are going to be scrapped?

If people were scrapping vehicles while they were still fit and it was done to bolster demand like it happened in many countries in the past that for a temporary period, the government gave incentives for vehicles to be scrapped, that I understand. But when an unfit vehicle is scrapped, why should the customer get any incentive for scrapping it?

[setuniket]

What do we really expect RCB to say!

Criticise the government for hefty taxes and the perilous effect on petrol vehicle sales only to invoke the wrath of the mighty. Maybe to even have good friends from Govt to meet him over a cup of tea.

[Turbohead]

I don't think his statement is valid in today's scenario. People are going out to get cars to protect themselves from Covid. Period. Covid deaths and it's related stories are pretty scary to the common man( although gruesome road accidents don't seem to bother)

But in the long run, I see car sales only increasing. I personally don't know a single person who has permanently given up on cars after buying his first. And I'm pretty sure that first time buyers today will try to change their cars when due.

Once you experience a convenience, it's hard to let go of it.

He's not entirely wrong this time around however absurd his previous statements might be

[humyum]

People will pay 200 rupees for a 20 rupees medicine too if they have no other option.

What is the option to petrol and diesel? Don't know how this guy became who he became.

Until the middle class of this country don't rise up and throw idiots from politics to car companies out, these guys will prevail.

[fazayal]

There is a story of Akbar and Birbal.

While having dinner Akbar said, "Brinjal is such a pathetic vegetable."

Birbal said, "Of course it is. Look at its shape, looks so bad. Even the colour is so odd. Don't understand how people even eat it."

After a few days they were having dinner together and now Akbar said, "Brinjal is such a nice vegetable."

Birbal said, "Off course it is. It's actually the king of all vegetables, it even has a crown on its head. The colour is also so royal, totally different from all vegetables. It is the best vegetable in the world."

Now Akbar said, "Few days back when I said I didn't like brinjal, you agreed and said bad things about it. Now when I am saying that I like brinjal, you are saying only good things about it. Why so?"

Birbal replied, "Your highness, I am on your payroll, not of brinjal's."

[Kosfactor]

History repeats perhaps on a different continent altogether.

Japanese cars become popular in US due the oil crisis in the 70s, the gas guzzling American cars became too expensive to run in comparison to light , fuel efficient Japanese cars.

Maruti sure has an advantage in a situation like this, you have got to use the car once you buy it anyways.

[Carma2017]

It is a fact that Mr Bhargava has quoted. If gasoline has touched Rs 100, Diesel ain't far behind. And people have dived into these vehicles as well. It's not a question of fuel. There is a section of population who have the money to afford cars. If we cite the logic of people buying cars to protect themselves only, then please oh please explain how Creta and the excessively overpriced i20 are selling at such high numbers. If survival was the only motive, then one could have gone ahead and got a car like i10 as well. But no, it is a fact that, for people in India, cars are an esteem object. They will buy cars that suit there image, no matter what is the cost, at point if sale or running cost.

[whitewing]

Originally Posted by SmartCat

Looks like all of you missed this gem:
Oh the irony

2014 statement:
https://www.team-bhp.com/forum/road-...tatements.html

2019 statement:
https://www.team-bhp.com/forum/india...as-mantra.html (Affordability at the cost of safety - RC Bhargava's mantra!)

I would also like to point out another irony.
If we refer to another thread on the Delhi Govt. revoking subsidy/incentive for Nexon EV (Delhi: Incentives suspended on the Tata Nexon EV), where many the near unanimous opinion of the forum members was that the declaration of a vehicle's mileage was ARAI's responsibility and not that of the manufacturer (and I agree with that view ).
Likewise, the road fitness is also decided by respective authorities.

Since Maruti has been in compliance with the laws of the land. Mr. Bharghava is not incorrect to state they make safe cars.

It is another matter, that many of us deem them as "tin cans". As also the double standards of manufacturers (not just Suzuki) in having different material standards for local cars vs. the export models.

That said, I do hope that Maruti manages to move families (2 adults and 2 kids) atop one motorbike to say, an Alto.
I do hope that Maruti stops making its cars more anorexic with each successive edition and I do hope that the consumer is given the option to choose any safety aid across trims and not just in the high end trims.

[GTO]

On a related note, I have to say this as someone who keenly follows car sales numbers in India. Rising fuel prices have never had a permanent effect on car sales, or even on daily car usage. At best, it leads to a temporary downswing in the mood & strengthens our affinity for fuel-efficient cars. But expensive petrol or diesel have never restricted car sales.

At least not like in the USA where high petrol prices have overnight led to a crash in pickup / SUV sales in favour of compact cars (end-2000s) and vice versa (as we are currently seeing).

Originally Posted by lonetraveller89

I know how we all like throwing rocks at the village idiot 'cos it's cool

Well said .