I proudly present the 34th Annual Report for the year 2018-19. On behalf of the Subrosfamily I would like to take this opportunity to thank all of you for being here. Yourpresence is a source of great motivation to all of us.
2018-19 turned out to be a mixed bag for the domestic automobile industry. Passengervehicle manufacturers faced some tough economic conditions especially in the second halfof the year after lukewarm sales even in the festive season. The primary reason wasstricter norms laid down by the RBI on NBFCs for financing of vehicles. There were someother tail winds during the year that also affected sales namely the Kerala Floods andhigh fuel and insurance costs. Nonetheless in the face of fierce pressures to sustainmarket share Management was carefully managing profitability and improving productivityto reduce the impact on the bottom line.
There was also a lot of positive movements in the sector. Talk of electric mobilitygathered steam with the government and industry and the Government seems to be firmingits mobility roadmap. The Government worked on promoting the idea of e-mobility byintroducing taxes on conventional vehicles reducing the gap in the prices of Diesel andPetrol fuels restricting life of diesel vehicles and incentivizing electric vehicles.With the government at centre after re-election the industry is likely to get a clearerpath for e-mobility.
In light of the positive sentiments expected in the industry Subros is confident andfuture ready to post a healthy growth. Our state-of-the-art Karsanpura plant in Gujarathas been setup to cater to our customer M/s Suzuki Motor Gujarat (SMG). Our investmentinitiatives are drawn up to simultaneously support growth and maintain a leadershipposition in the country.
Your Company is also working on newer technologies to provide solutions for the nextgeneration vehicles be it electric or BS VI vehicles. We are also investing in skilldevelopment to equip with trained manpower requirements of the future. Having performedwell in the recent years seeing the highs and lows of business I believe Subros is atpar with the leaders in the field in operational efficiency cost control quality andreliability and product innovation.
In the years to follow to take a great leap forward in growth momentum Subros isgearing up to set globally bench-marked standards in product reliability and customersupport.
In conclusion in 2018-19 Subros raised the bar on performance on all fronts. Oursuccess without doubt is owed to the committed management employees and theunrelenting support of our customers and partners. I would like to acknowledge the teamand hope they will continue to excel undeterred in their endeavours.
It is equally important to acknowledge the resolute faith and support of our customerspartners (Suzuki Motor Corporation Japan & Denso Corporation Japan) shareholdersdealers suppliers financial institutions and everyone else who has been with us on thisjourney. I would like to extend my deepest gratitude to them and hope to see our Companygrow an even stronger bond with all our stakeholders.