Maruti: Small cars could become unviable due to rising costs

Maruti doesn’t make any significant profits on small cars, making them unviable with an increase in costs.

R C Bhargava, Chairman, Maruti Suzuki, has said that the company could discontinue its small cars if they become unviable due to rising costs, as a result of the government’s policy interventions.

The statement comes in the wake of the government’s decision to make 6 airbags mandatory in all cars. The move is expected to increase the prices of cars. Bhargava stated that the company doesn’t make any significant profits on small cars, making them unviable with an increase in costs.

According to Nitin Gadkari, Minister for Road Transport & Highways, India has barely 1% of the vehicles across the globe but records 10% of the world’s road deaths. The 6 airbag norm was proposed with an aim to make Indian roads safer.

Source: ET Auto