Small cars have long-term future in India: Maruti Suzuki chairman R C Bhargava
India is not a rich country where everybody has a per capita income of $40,000 and everybody can buy big cars, says Maruti Suzuki chairman R C Bhargava.
- Apr 28, 2026,
- Updated Apr 28, 2026 9:43 PM IST
Maruti Suzuki India Ltd chairman R C Bhargava on Tuesday said that India is a country where small cars have a long-term future as the majority of people cannot afford big sport utility vehicles (SUVs).
“If a large part of India’s population wants to have decent mobility, they have to have low-cost small cars. India is not a rich country where everybody has a per capita income of $40,000 and everybody can buy big cars,” Bhargava told reporters after India’s biggest carmaker announced its fourth-quarter earnings.
While sales of small cars have been on a downward path, the Maruti Suzuki chairman is bullish that the Goods and Services Tax (GST) rate cut will revive the small car segment.
“In the last six years, the share of small cars in our total volumes has been declining because the sale of small cars compared to what it used to be in 2018-19 has been coming down. That is the reason why the government looked at seriously cutting down the GST rates. Now, with that happening, it is inevitable that what was lost in those last six years will gradually come back,” explains Bhargava. “Our share small cars in total volumes will gradually go up, inevitably,” he adds.
Maruti Suzuki has lined up Rs 14,000 crore capex for the financial year 2026-27. “We are setting up new lines in Kharkhoda (Haryana). We are starting work on a new site in Gujarat. The capex has gone up due to investments in manufacturing capacity,” said Bhargava.
On the decline in domestic market share below 40%, Bhargava says the automaker has prioritized exports in “national interest” and exhausted 100% production capacity.
“What happens to market share is an offshoot of what’s happening to the total market. If I am utilizing 100% capacity and making a profit on sales of cars, why do I care too much about market share?” he asked.
Net profit of Maruti Suzuki plunged 6.45% year-on-year to Rs 3,659 crore for the fourth quarter while revenue from operations 28% to Rs 52,462 crore.
On the decline in Q4 profit, Bhargava said two factors have hit profits. “Commodity prices went up sharply this year. Our costs went up by a little over 2%. 2% is a huge number and that has brought down profit levels,” he said.
Maruti Suzuki India Ltd chairman R C Bhargava on Tuesday said that India is a country where small cars have a long-term future as the majority of people cannot afford big sport utility vehicles (SUVs).
“If a large part of India’s population wants to have decent mobility, they have to have low-cost small cars. India is not a rich country where everybody has a per capita income of $40,000 and everybody can buy big cars,” Bhargava told reporters after India’s biggest carmaker announced its fourth-quarter earnings.
While sales of small cars have been on a downward path, the Maruti Suzuki chairman is bullish that the Goods and Services Tax (GST) rate cut will revive the small car segment.
“In the last six years, the share of small cars in our total volumes has been declining because the sale of small cars compared to what it used to be in 2018-19 has been coming down. That is the reason why the government looked at seriously cutting down the GST rates. Now, with that happening, it is inevitable that what was lost in those last six years will gradually come back,” explains Bhargava. “Our share small cars in total volumes will gradually go up, inevitably,” he adds.
Maruti Suzuki has lined up Rs 14,000 crore capex for the financial year 2026-27. “We are setting up new lines in Kharkhoda (Haryana). We are starting work on a new site in Gujarat. The capex has gone up due to investments in manufacturing capacity,” said Bhargava.
On the decline in domestic market share below 40%, Bhargava says the automaker has prioritized exports in “national interest” and exhausted 100% production capacity.
“What happens to market share is an offshoot of what’s happening to the total market. If I am utilizing 100% capacity and making a profit on sales of cars, why do I care too much about market share?” he asked.
Net profit of Maruti Suzuki plunged 6.45% year-on-year to Rs 3,659 crore for the fourth quarter while revenue from operations 28% to Rs 52,462 crore.
On the decline in Q4 profit, Bhargava said two factors have hit profits. “Commodity prices went up sharply this year. Our costs went up by a little over 2%. 2% is a huge number and that has brought down profit levels,” he said.