R.C. Bhargava, Chairman of Maruti Suzuki India, declared during the 44th Annual General Meeting that India must robustly confront American pressure and potential 50% tariffs. He stated that the nation must stand united in supporting the government and resist any form of bullying. This potential decision by the US could severely impact Indian exports, particularly affecting labor-intensive sectors like ready-made clothing, diamonds, footwear, leather, and gems-and-jewelry, potentially jeopardizing jobs. He emphasized the duty to support the government and uphold the nation’s dignity without yielding to pressure. He discussed the need for GST reforms, viewing them as a significant and historic step. He expressed the hope that a reduction in the GST rate for small cars to 18% would strengthen the industry and create more employment opportunities. Currently, cars face a 28% GST, the highest tax bracket, which increases the tax burden on smaller cars substantially. SUVs face taxes nearing 50%, while electric vehicles only have a 5% GST. He believes that changes to the GST could revitalize the small car market and noted that the government is considering providing relief to lower-income consumers. He also advocated for a ‘Kei car’ model, similar to Japan’s, recognizing the dependence of millions of Indians on two-wheelers. He highlighted the need for smaller, affordable, and safer alternatives. He referenced Japan’s ‘Kei car’ model introduced in the 1950s, where cars are smaller, have lower taxes, and simpler safety rules. He suggested India should implement similar car models to offer better options to scooter and motorcycle users. Bhargava also mentioned that India should consider both electric and hybrid car technologies, noting the simultaneous growth of both in the United States and Europe.
