Maruti Suzuki has said that government taxes on vehicles have made them out of reach for most people. The automaker’s criticism of the government’s tax regime is similar to that of Tesla and Toyota Motor. In early 2019, as Tesla was looking to enter the Indian market, the CEO of the US EV startup, Elon Musk, said that India’s duties prevented it from importing electric cars. to test demand before committing to building a local factory. Toyota, in 2015, stopped expanding in India due to high tariffs.
While speaking at an event, Maruti President RC Bhargava said that government policies make them see cars as luxury products that need to be taxed high. He added that this has resulted in the auto industry’s growth slowing from 12% to 3% over the past 12 years, partly due to weak government policies. The cheapest model from Maruti suzuki cost $3,39,000. Currently, a 28% goods and services tax applies to most new cars.
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According to the World Bank, per capita income in the country is about $2,300 a year, compared with $12,500 in China and $69,000 in the US. Only 7.5% of Indian households own a car in India, lower than in China, where almost half of urban households and a quarter of rural households own a car.
Separately, speaking at the event, Maruti CEO Hisashi Takeuchi said that the company has some gaps in its product portfolio and is working to strengthen the lineup. The automaker sells cheaper cars on the market and is looking to introduce two new sport utility vehicles in January.
First published date: December 20, 2022, 10:23 a.m. IST
