Maruti expects car sales to grow by 10 per cent

Maruti Suzuki to take on the SUV segment by launching its first fullfledged SUV
New Delhi: India’s largest carmaker Maruti Suzuki said on Thursday that it expects its cars sales to grow by over 10 per cent in 2014-15. To take on the competition in the SUV segment, Maruti is looking to lau-nch its first full fledged SUV in the first quarter of 2015-16 and a compact SUV in 2016-17. Maruti’s board on Thu-rsday decided to hike FII limit in the company to 40 per cent from current 24 per cent. It will require approval of the shareholders and then a request to RBI for notification.
“The sports utility vehicle (SUV) will be launched in the first qua-rter of next financial ye-ar, though it will not be a compact SUV and rather a bigger SUV. The compact SUV comes in the next year after that,” said Maruti Suzuki chairman R. C. Bhargava. Maruti’s board also approved adopting a gui-deline for dividend payout ratio within the ran-ge of 18-30 per cent, up from the average of 10-15 per cent of net profit in the previous years.
“For the fiscal we are expecting over 10 per cent sales growth but in the second half of the fiscal, the growth rate in terms of percentage will be slower compared to the first half as the base was higher in the second half last year,” said Mr Bhargava.
( Source : dc correspondent )
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