Reviving the Road: Small Cars for Safer Indian Streets

Maruti Suzuki India Chairman RC Bhargava suggests introducing smaller cars with lower tax slabs to move consumers from risky two-wheelers to safer passenger vehicles. Changes in safety and emission regulations have raised entry-level car costs, causing a market decline, especially impacting consumers at the lower end of the economic spectrum.

Chairman RC Bhargava of Maruti Suzuki India has proposed a crucial shift in the automotive industry: introducing small, lower-taxed cars to attract consumers currently reliant on two-wheelers, known for their higher safety risks. At Maruti Suzuki's 44th Annual General Meeting, Bhargava emphasized the necessity of affordable entry-level cars due to rising safety and emission standards.

As Bhargava noted, Japan faced a similar issue in the 1950s and resolved it with Kei cars, which had less stringent safety regulations and lower taxes. He attributed the skyrocketing costs of small cars in India to the adoption of European Safety and Emission Standards since 2018-19. This pricing surge notably impacted lower-income individuals who primarily use two-wheelers.

Bhargava suggested that revitalizing the small car segment could significantly boost the car industry and overall economy, similar to the growth seen in China and Japan's automotive sectors. He called for measures that balance safety with affordability, potentially increasing Maruti's market share and rejuvenating the Indian automotive scene.

(With inputs from agencies.)