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Maruti Suzuki chairman RC Bhargava said that 88% of people in India cannot even buy entry level cars. Out of 30 crore families, the annual income of 20 crores is less than ₹ 5 lakh. The company is expected from exports.
Earlier, the entry-level cars used to reach the middle class, now their prices have also increased so much.
Highlights
- 88% of people in India cannot buy entry level cars.
- The annual income of 200 million families is less than ₹ 5 lakh.
- Maruti Suzuki is expected from export.
New Delhi. RC Bhargava, chairman of the country’s largest car manufacturer Maruti Suzuki, made a shocking statement. He says that 88 percent of the people in India are not even in the position of buying an entry level car. Bhargava said this big thing while addressing investors after the company’s fourth quarter earnings report. He also put some facts to prove his point. Bhargava says that out of 30 crore families of the country, 20 crore annual income is less than five lakh rupees. In such a situation, they can think of buying a car.
Bhargava said, “If you look at the data of income distribution, you will find that out of these 30 crore families, 20 crore income is less than $ 6,000 (about ₹ 5 lakh) annually.” Bhargava said that the annual income of only 12% of the families in the country is more than ₹ 12 lakhs and people of this class can buy a car worth ₹ 10 lakh or more.
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Entry-level cars also out of reach
Bhargava said that earlier the entry-level cars used to reach the middle class, now their prices have also increased so much that the people of Lower-INCAM group have been out of this segment. He blamed the rigorous regulatory rules and the increase in the prices of raw materials for this. Bhargava said that there is a steady decline in demand for cars in the domestic market. He cited the data of the Society of Indian Automobile Manufacturers, stating that in 2025-26, car sales estimated by only 1-2%, compared to 3% last year.
Hope is visible here
Maruti Suzuki seems to be expecting earnings from exports amid this disappointment. According to Maruti Suzuki, the company’s exports increased by 17% last year and this year the figure is likely to reach 20%. Maruti Suzuki has recorded a 9% decline in the fourth quarter of FY 2025, with Ebitda and 4.3% decline.
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