India to Stand Firm Against US Pressure, Says Maruti Suzuki Chairman

Maruti Suzuki India Chairman R.C. Bhargava made a strong statement at the company’s 44th Annual General Meeting, asserting that India should stand firm against potential American pressure and a 50% tariff. He urged the country to unite in support of the government and to not yield to any form of intimidation. The impact of any US decision would directly affect Indian exports and labor-intensive sectors such as apparel, diamonds, footwear, leather goods, and jewelry, potentially threatening employment. He stressed the importance of supporting the government and upholding national dignity in the face of such pressures. Bhargava also addressed the Goods and Services Tax (GST) reforms, calling them a major and historic step. He expressed hope that reducing the GST rate on small cars to 18% could bolster the industry and increase job opportunities. Currently, cars are subject to a 28% GST, the highest slab, which significantly increases the tax burden on small cars. The tax can reach almost 50% for SUVs, while electric vehicles have a 5% GST. He believes that changes in GST could breathe new life into the small car market and acknowledged the government’s recognition of the needs of lower-income consumers. Bhargava also emphasized the need for a ‘Kei car’ model similar to Japan’s, highlighting the dependence of millions of Indians on two-wheelers. He advocated for smaller, affordable, and safer alternatives, pointing to Japan’s ‘Kei car’ introduction in the 1950s. These cars are smaller in size, attract lower taxes, and have simpler safety regulations. He suggested that India should consider similar cars to offer better options to those who use scooters and motorcycles. In addition, he stated that India should focus on both electric and hybrid technologies, as both are growing in countries like the United States and Europe.