Government should bring down taxes, ease regulations for small cars: Maruti Suzuki Chairman
Maruti Suzuki Urges Government to Lower Taxes on Small Cars
Table of Contents
RC Bhargava, Chairman of Maruti Suzuki India Limited (MSIL) | Photo Credit: KSL
Tax Reduction Proposal
Maruti Suzuki India Limited (MSIL) has called on the government to implement significant tax reductions and regulatory reforms for entry-level cars, aiming to facilitate the transition of over 30 crore two-wheeler owners to four-wheelers. RC Bhargava, MSIL’s Chairman, emphasized this need during a virtual press conference on Friday.
Japanese Kei Car Model
Bhargava pointed to Japan’s successful Kei car segment as a model for India, highlighting how differentiated regulations and lower taxation have made four-wheelers more accessible to the Japanese market. He stressed that similar measures could revolutionize India’s automotive landscape.
Affordable Vehicle Target
- Ideal price point: ₹5 lakh
- Applicable to both EVs and petrol vehicles
- Focus on entry-level segment
- Aim to facilitate two-wheeler to car transition
Electric Vehicle Plans
MSIL is set to make its entry into the electric vehicle market with the launch of the e Vitara before September-end. The company has ambitious plans for its first EV:
e Vitara Launch Details
- Launch timeline: Before September-end 2025
- Annual sales target: 70,000 units
- Focus on export markets
- Strategic entry into EV segment
Q4 Financial Performance
Q4 FY25 Results
Market Performance and Outlook
The company’s annual performance shows resilience despite market challenges:
FY25 Highlights
- Consolidated net profit: ₹14,500 crore (up 7.5% YoY)
- Revenue: ₹1,52,913 crore (8% growth)
- Total vehicle sales: 22,34,266 units
- Export growth: 17.5%
- Domestic market growth: 2.7%
Market Performance
While domestic market growth remained modest, strong export performance helped achieve an overall growth of 4.6% for the year. The company’s stock closed at ₹11,685.90 on the BSE, marking a slight decline of 1.81%.
Published on April 25, 2025
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