Brushing aside concerns raised by proxy advisory firm IiAS on Suzuki’s investment in the EV project, Maruti Suzuki Chairman RC Bhargava on Thursday asserted that there was nothing in it against the interest of the company and its shareholders as it is part of an earlier arrangement. Countering the criticism from the proxy advisory firm, Bhargava noted that all models produced at Suzuki Motor Gujarat (SMG), including EVs, would be ultimately sold by Maruti Suzuki India (MSI) in the marketplace.
IiAS has raised serious questions regarding the decision of the Suzuki Motor Corporation (SMC) to invest directly in the EV project instead of MSI doing it.
“This proxy firm had also come out against the establishment of the Suzuki Motor plant in Gujarat. The shareholders overwhelmingly rejected the advice of the proxy firm. The voting was overwhelmingly in favour of this project. What has happened now is just within that project only, there has been no new agreement,” Bhargava told PTI.
He said the deal had already been approved by the shareholders and there was nothing new to be opposed to.
“It is already a done deal, this is not a new thing. I don’t know why they (IiAS) are opposing it. The cars made in Gujarat will be supplied to Maruti at a cost, we will sell the car, that is the arrangement approved in 2014, so what is new here,” he noted.
On the MSI’s plans on launching an EV by 2025, Bhargava said: “They (SMG) will manufacture it in Gujarat and sell it by 2025”.