Necessitated by GST reforms, the car industry would grow to 6.1 to 6.3 million by financial year (FY) 2030-31 and that the share of the small car market would grow significantly faster than what had happened in the last five years, RC Bhargava, Chairman, Maruti Suzuki India (MSIL), has said.
National GDP growth figures since the GST reforms have been better than were forecast by most agencies, he said. Despite the Iran-US war, that has adversely affected most global economies, the Indian economy continues to do well and remains the fastest growing among larger countries, Bhargava noted.
“GST collections, despite rates of tax being reduced on over 90 per cent of products, have shown buoyancy and reached new high levels. I believe that without GST reforms we may not have done so well in the difficult months that have elapsed…I am happy to inform you that these GST reforms have given a new impetus not only to the automobile industry but to several sectors of the economy,” Bhargava said.
The FY2025-26 was a record year for MSIL that achieved the highest level of sales of 24.22 lakh vehicles, highest exports of 4.47 lakh cars, highest production of 23.4 lakh cars and highest consolidated revenues of ₹1.83 lakh crore, he said adding that the annual profit at ₹14,445.4 crore was the highest ever.
“Overall, after the implementation of the new GST rates on September 22, 2025, MSIL retail sales grew 17 per cent in the second half of last year. We ended March with 1.9 lakh pending bookings, a result of inadequate manufacturing capacity of the models in demand. This was the consequence of adjustments made over the past several years to cater to the fall in small car sales and the growth of the SUV market,” the Maruti Chairman noted.
He said MSIL was remedying this situation by making all its new production lines flexible enough to change platforms and models as may be required. This is already showing results and in the first quarter of this year MSIL’s sales grew by 38 per cent, while industry grew 28 per cent. The sales of small cars grew 17 per cent in the second half of last year but grew 35 per cent in first quarter this year as more cars required by customers could be produced.
“Our economy has a huge potential for growth. The government is committed to taking the economy along a sustained high growth path. The automotive industry will follow as the ability to commute comfortably and safely is a constituent of a developed economy…We have to take into account not only the implications of artificial intelligence but also, as good citizens, to ensure that we play our part in meeting all the requirements of environmental protection and safety,” he said.
On India’s journey towards Net Zero, Bhargava said India needs to use multiple technologies to achieve its goal of moving to net zero, and he strongly believes that biogas can be generated in large quantities from locally available resources.
This form of energy would substitute for imported CNG and be clean and renewable with zero import content. In addition, there would be many valuable byproducts.
“Maruti Suzuki Board has approved that we start four biogas plants in the first phase, at a cost of ₹561 crore, and once we have learnt more about the process and technology, we hope to invest substantial amounts of money in the production and distributions of biogas,” the Maruti Chairman said.
It will provide zero emission fuel and reduce the pressure on CNG and on burning coal for generating electricity, he said.
“Our emphasis on constantly improving customer satisfaction and convenience remains unchanged. The sales of cars in rural areas are growing faster than in urban areas, and we are accordingly implementing the expansion of sales, service and spare part outlets.
Meanwhile, Bhargava also urged the government, including the State governments, to proceed faster on the road of reforms and increase efforts to make doing business easier.
“Use more technology as it has shown that it reduces corruption and delays. Time saving is a major factor in lowering costs of production. Trust the private sector and the power of competition. Faster creation of wealth, in the most efficient manner, is the only way that India can make up for the time that we have lost. This has been demonstrated by the automobile sector,” he noted adding that large employment opportunities have opened up in the economy due to the growth of a competitive automobile industry.
“My request to all political parties is to support reforms and programmes that create wealth. The government, and the opposition, should ensure that the additional resources that would be generated would be used to create a more equitable and just society,” Bhargava added.
Published on August 9, 2026
