High regulatory burden, taxes keep cars out of reach of Indians: Automaker

The levies by the Indian govt have made purchasing vehicles expensive for the population, said RC Bhargava, Maruti Suzuki's chairman

The Car-industry in India is suffering from massive setbacks with its growth slowing down to 3 per cent from 12 per cent in the past twelve years, Bloomberg reported quoting RC Bhargava, Maruti Suzuki's chairman. The levies by the Indian govt have made purchasing vehicles expensive for the population, he said on Monday.

“Government policies are such that they treat cars as luxury products that need to be heavily taxed,” Bhargava said at an event in New Delhi. He further emphasised that “Car affordability is not at all related to income.” 

According to IndianFiling, Maruti’s cheapest car costs Rs 3.40