India's Economic Conundrum: The Car Ownership Dilemma

Congress leader Jairam Ramesh highlighted the affordability issue of car ownership in India. He noted that only 12% of households can buy cars, attributing the economic slowdown to widespread real-income stagnation. Citing Maruti Suzuki's chairman, Ramesh emphasized the limited car market due to income disparity.

In a recent statement, Congress leader Jairam Ramesh expressed concerns over India's economic slowdown, attributing it to real-income stagnation that prevents the majority from purchasing cars. According to Ramesh, only 12% of Indian households have the financial capability to afford a car.

The issue was further emphasized by R C Bhargava, Chairman of Maruti Suzuki India, who reported that small car sales have dropped by approximately 9% and overall passenger vehicle sales experienced a meager growth of just 2% over recent years.

Bhargava's insights reveal that the upcoming year's growth is expected to plateau between 1-2%, a consequence of the financial disparity affecting 88% of households, as per Ramesh's statement.