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INDIA: Maruti Suzuki halves fiscal 2013 growth forecast to 5%

By Graeme Roberts | 12 October 2012

Maruti Suzuki has cut its fiscal 2013 growth forecast from 10% to 5%. The revision means the Indian automaker will have to grow at around 10-11% in the second half of 2012.

Maruti Suzuki chairman RC Bhargava told CNBC-TV18 that the company is considering expanding its diesel capacity earlier than intended. The automaker may also boost output at its Gurgaon plant while it is considering a new engine plant in the state of Gujarat.

Bhargava said: "If the diesel disparity and demand for diesel continues then we have to go for expansion. The market share of diesel cars this year has risen to 58%, it was 47% last year and 36% a year before that. I think the share will be over 60% by the end of this year."