Maruti Suzuki India Chairman RC Bhargava said on Tuesday that the decline in sales of cars priced below Rs 10 lakh is a cause for concern for the industry. The executive said that cars in this price segment once accounted for 80 percent of the domestic market due to their affordability.

According to PTI, overall growth in the auto market is “not happening” due to decline in this segment. Bhargava added that people need more disposable income for a revival of growth in the low price segment of the market.

He also said that the automaker expects an overall growth of 14 percent in retail sales during the current festive season. “Of course, the reality is that the sub-Rs 10 lakh market is not growing. It’s actually decreasing. This raises some concerns because unless the lower end of the market grows, feeders will not come to the upper market,” the chairman said.

Regarding growth issues in other segments of the market, Bhargava said: “This market (segment) is not growing right now. This is a cause for concern. This is not a general slowdown, but segmentation taking place. “I guess it doesn’t make me very happy that the growth is only happening in more expensive cars.”

Data from the Society of Indian Automobile Manufacturers (SIAM) revealed that wholesale sales of passenger vehicles in the country reached 33,77,436 units in 2018-19, while the same figure reached a record high of 42,18,746 units in 2023-24.

Also Read: Do You Want to Get a Home Loan This Diwali? Here Are Some of the Best Rates Offered by Banks

Traditionally, Maruti Suzuki India has achieved huge growth from the affordable car segment under Rs 10 lakh. But now things are changing. “Growth is not coming below Rs 10 lakh for Maruti either. We have volumes there, but that’s why there is no growth. If we had not grown in the Rs 10-lakh-plus market, we would have been well below 40 per cent in our (overall industry) market share,” the chairman noted.

Explaining the reason for the decline in the segment, the manager said that the main factor was affordable prices. He said people should have more disposable income.