Ahmedabad: Maruti Suzuki India chairman RC Bhargava said on Friday that car purchases in India are mainly between Rs 10 lakh to Rs 25 lakh. It is limited to the top 12 percent families whose annual income is more than Rs 12 lakh, while the remaining 88 percent people cannot even buy small cars.
If 88 percent of the people of the country are below the income level where it earns Rs 1000 per month, then it is less than Rs 1000 per month. If you are not able to buy cars worth Rs 10 lakh or more, then how can you get a high increase in car sales? He said, “As I said earlier, small cars, even cheap cars have become unattainable for these people due to the high cost of applying regulatory measures.”
We have seen that the sales of small cars (sedans and hatchbacks) have fallen by about 9 percent this year. So, if there is a decrease of 9% in the category of cars purchased by 88% of the people in the country, then where do you see the growth?
In the fourth quarter of FY 2025, Maruti Suzuki’s consolidated net profit declined by 4.3% to Rs 1,10,000. 3,711 crore rupees This pressure on net profit has come due to a continuous decline in sales of small cars and weak demand in urban markets.
According to SIAM data, the sales of total passenger vehicles in India in 2024–25 increased by 4.3 million vehicles, which is only 2 percent more than a year ago. Bhargava said, “Only 34 out of 1,000 people in India have a car, which is probably the lowest in this matter as compared to any country in the world.”
For a developing country, only two to three percent growth rate in sales of passenger vehicles may not increase significantly in the country’s access to a significant increase in the country. This is a matter of concern, especially because according to SIAM’s estimates, 2025–26 will not be a better year. The growth rate is estimated to be one to two percent.
The post small cars also now out of reach of common people: Maruti Chairman Bhargava first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
