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R. Bhargava
R. Bhargava
Chairman, Maruti Suzuki India Limited
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GST Cheer For Autos: Expect 10% Growth For Car Industry Compared To Single-Digit Growth: RC Bhargava

📅 Sep 04, 2025 CNBC-TV18 8 MIN 2120 VIEWS 30 SEGMENTS · 2 SPEAKERS
GST Bonanza CNBC-TV18 Exclusive | RC Bhargava, Chairman, Maruti Suzuki To CNBC-TV18. Expect prices of entry-level cars like Alto to come down by 8.5-9% Expect 10% growth for the car industry Small car market will continue to grow along with SUV #gstratecuts #gstcouncilmeeting #2025gstcouncilmeeting #2025gstratecuts #gsteforms #gstrejig #nirmalasitharaman #gstrationalisation #gstbonanza #gsttaxstructure #electricvehicles #EVs #twowheelers #3wheelers #hybridcars #smallcars #electricvehicles #autosector #autostocksrally #marutisuzuki #marutisuzukisales #2026marutisuzukioutlook #cnbctv18 #cnb...

Questions asked in this interview

12
  1. 0:07How do you think this is going to boost sentiments at the entry level car segment?
  2. 1:25So overall, how do you expect FI26 to finish sir?
  3. 1:47Do you think the policy intent is now clear?
  4. 2:25Do you think that benefit has now gone?
  5. 2:54Does this impact the sale of hybrid cars?
  6. 3:22As a veteran of the industry, sir, what is the estimate or what is the good news you could give to consumers?
  7. 4:34What about the rest of your segments?
  8. 5:16So two and a half percent price reduction across the portfolio?
  9. 5:25Is Maruti Suzuki going to ramp up production now?
  10. 5:42Right now in terms of the future portfolio for Maruti Suzuki now that this rate rationalization exercise is over what do you think will be the product mix that Maruti will focus on?
  11. 7:02Does this GST reduction now come as a savior?
  12. 7:31Any request for the long term?
Interviewer 0:07 ↗
Joining us right now is the chairman of Maruti Suzuki, Mr. R. Bhargava. Mr. Bhargava, big move for the automobile industry and for the consumer in general. Big relief ahead of the festive season. How do you think this is going to boost sentiments at the entry level car segment?
R. Bhargava 0:27 ↗
Well, I think this major reform by the government is going to make not only a big difference to the automobile industry but is going to make a big difference to the economy as a whole. Certainly the small car segment is the big beneficiary. It will, I assume, from the 22nd of September onwards our expectation is that we will start getting into about 10% growth a year instead of the current stagnation and decline. I believe the automobile industry as a result will also move away from its 1% to 2% growth and get into a 6% to 7% growth as a whole.
Interviewer 1:17 ↗
Right. So you're saying you're expecting 10% growth in FI26
R. Bhargava 1:22 ↗
For the remaining part of 26.
Interviewer 1:25 ↗
Right. The first six months are gone anyway. So overall, how do you expect FI26 to finish sir?
R. Bhargava 1:33 ↗
Well, if I take first six half to have zero, actually we have a decline. Then overall for the year we should get for the small car segment a growth of maybe between four and 5%.
Interviewer 1:47 ↗
Right? That indeed is an important point. Now when it comes to the policy clarity do you think the government has also now clarified the policy intent that EVs will be at one rate 5%. Beyond that, if you have a small car either in CNG or petrol or hybrid or any other alternate fuel that will be taxed at 18%, large cars, large SUVs, hybrid, alternate fuels would go in 40% bracket. Do you think the policy intent is now clear?
R. Bhargava 2:17 ↗
Very clear on hybrids.
Interviewer 2:25 ↗
Do you feel that the cost advantage that hybrids may have had marginally earlier, for example, a large hybrid car over 1500 cc had a 28% GST and a 15% cess and maybe a large SUV or a luxury car would have had a 50% tax rate if you look at a 22% cess. Do you think that benefit has now gone?
R. Bhargava 2:48 ↗
Certainly gone because both are going to be at the same rate.
Interviewer 2:54 ↗
Does this impact the sale of hybrid cars?
R. Bhargava 2:59 ↗
Not very much because at that end of the market the market is very small. You're talking of a price range of around 40 to 50 lakhs. It's a very small market there. So the impact theoretically there's an impact but overall in terms of volume it's not going to make much of an impact.
Interviewer 3:22 ↗
Right. I would also like to ask you about the reduction in prices. We were just speaking to Mercedes-Benz and they said they expect prices to come down for luxury cars in the range of 5 to 8%. As a veteran of the industry, sir, what is the estimate or what is the good news you could give to consumers?
R. Bhargava 3:42 ↗
Well, we expect that at the entry level, let's say the auto level, I can't give you an exact figure, but I think the reduction in retail price for the customer will be between 8 and a half and 9%.
Interviewer 4:01 ↗
That's an important aspect. So you believe that for entry-level cars 8 to 9% to even 10% could be the price reduction.

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Cite this transcript

APA, MLA, BibTeX
APA

Bhargava, R. (2025, September 4). GST Cheer For Autos: Expect 10% Growth For Car Industry Compared To Single-Digit Growth: RC Bhargava [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/1018667/

MLA

R. Bhargava. "GST Cheer For Autos: Expect 10% Growth For Car Industry Compared To Single-Digit Growth: RC Bhargava." CNBC-TV18, 4 Sep. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1018667/.

BibTeX 
@misc{bhargava2025_1018667,
  author       = {R. Bhargava},
  title        = {GST Cheer For Autos: Expect 10\% Growth For Car Industry Compared To Single-Digit Growth: RC Bhargava},
  howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
  year         = {2025},
  month        = {sep},
  url          = {https://ceointerviews.ai/interview/1018667/},
  note         = {Speaker-attributed transcript with timestamps}
}