Concerns Rise as Sales Slump in Sub-Rs 10 Lakh Car Market

The decline in sales of cars priced under Rs 10 lakh, a segment which once dominated the domestic market, is concerning, says Maruti Suzuki India Chairman RC Bhargava. The lack of growth in this segment impacts the overall market, which he attributes to affordability issues.

There is growing concern as sales in the sub-Rs 10 lakh car market continue to decline, affecting the overall growth of the industry. Maruti Suzuki India Chairman RC Bhargava highlighted the issue during an earnings call on Tuesday, emphasizing affordability as a key factor.

Bhargava stressed that the decline in this crucial segment, which once represented 80% of the market, impedes expansion in the upper market. Despite a record high in total passenger vehicle sales in 2023-24, cars under Rs 10 lakh now account for less than half of the market.

While the festive season boosted retail sales by 14% for Maruti Suzuki, Bhargava warned of only modest overall fiscal growth and called for measures to increase disposable incomes, crucial for stimulating demand in this struggling sector.

(With inputs from agencies.)