Maruti Suzuki, India's biggest car maker with more than 50 per cent market share in the passenger vehicles segment during 2017-18, expects strong intervention from the Government to solve the unprecedented auto crisis. NDTV’s carandbike quoted R C Bhargava, Chairman, Maruti Suzuki India, saying, "The Prime Minister has become aware and taken cognisance of the things that are happening. And the Finance Minister has also become fully aware of the crisis, and she knows it affects the economy, the budget, tax revenues and everything.
I think we should expect government intervention. But the government has to become aware of all the factors that have happened, like the states imposing (higher) road tax, insurance, banks doing something. I think all these things have to be attended to. I have confidence that the Prime Minister and Finance Minister - if anybody can make this change - these are the two persons that can make it change". He also added that despite several prior requests and demands of the sector having fallen on deaf years, the industry can now look forward to an intervention.
Whether that helps will come in the form of a GST tax cut remains to be seen. It was just last week that Mr Bhargava had joined a delegation of other senior industry executives to call on Finance Minister Sitharaman, to appeal on behalf of the whole sector. Their key demands included a reduction in the GST rate from the current 28 per cent to 18 per cent.