Increased automobile ownership is going to enable people with flexibility, safety and ease in their efforts as they go about contributing to the economy and fuelling India’s relentless economic growth.India, the land of over 1.4 billion people is a shining beacon of economic progress today. Having touched the position of the 4th largest economy in the world, earlier this year, the resilience of our country in the face of global disruptions deserves both recognition and admiration.
While that in itself is a vast sphere of discussion, let us reserve it for another day. For now, I want to focus on another aspect of economic progress – the importance of improving road infrastructure and motorisation.
In recent years, the Ministry of Road Transport and Highways alongside numerous other government agencies are transforming India’s road infrastructure network. The National Highways Authority of India (NHAI) has consistently increased its capital expenditure over the past five years, making significant advancements in road infrastructure across urban and rural landscapes.
The nation’s leadership understands how critical this infrastructure is as a lever of economic progress. Modern road infrastructure is critical for stimulating trade by reducing transport time & costs, increasing accessibility to resources and markets, job creation and improved connectivity. And it gives me immense pride to say that now, India has the second longest road network in the world!
So far as I see, there was just one cog in the wheel with context to the scenario we are discussing here. In the last 5 years or so, vehicle prices went up considerably due to new regulatory requirements such as the implementation of BS 6 emissions norms alongside new safety regulations. This has had a substantial impact on the automotive industry, particularly on the affordability for customers in the entry-level passenger vehicle segment, which has seen declining sales ever since.
Room for growth for all segments of cars
An alternative theory here is that Indian customers now only seek larger, premium vehicles. However, I don’t see this to be entirely true. While preference for SUVs is very definitely on the uptick, hatchbacks and compact cars are very much the mainstay for India. Take for example, the Maruti Suzuki WagonR. In what is commonly being referred to as an era of SUVs’, the WagonR has consistently been the bestselling car in India for the past 4 years! The way I see it, the Indian automobile industry is at crossroads during this incredible phase of economic growth. The Government of India has recognised this and rolled out historic GST reforms that have reduced taxes on automobiles, more so, for the compact passenger vehicle segment to benefit customers and make cars more accessible. Given the scale of the movement, we at Maruti Suzuki too went back to the boardroom and put our minds together to come up with a movement of our own.
Energising a movement
Recently, I had the good fortune of revealing Maruti Suzuki’s contribution to the movement – putting India on four wheels. Building on the GST rate revisions for passenger vehicles, Maruti Suzuki has rolled out offers like never before! The Company is offering incredible customer benefits with revised new car prices that are lower than the GST 2.0 rates. Our objective is to spearhead an automotive movement that makes the dreams of car ownership come true for countless Indian families. And what better time for it than the auspicious Indian festive season!
In my opinion, several favourable factors have come together this year for enhancing customer sentiment and product affordability:
- Lower vehicle prices and EMIs to make them more accessible
- The revised new income tax structure that puts more money in the hands of customers
- Repo Rate Cut for lower EMI interest rates
- A favourable monsoon season
Increased automobile ownership is going to enable people with flexibility, safety and ease in their efforts as they go about contributing to the economy and fuelling India’s relentless economic growth. At Maruti Suzuki, we are doing everything in our power to ensure we can contribute to this historic movement and spread the joy of mobility to as many people as possible.
(The author is Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki. Views are personal.)
