Easing Sales In sub-Rs 10L Not Good For Mkt: Bhargava
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New Delhi: Decline in sales of cars priced less than Rs10 lakh, which once accounted for 80 per cent of the domestic market, due to affordability issues is a cause of concern, Maruti Suzuki India Chairman RC Bhargava said on Tuesday.
As a result of the decline in sales of the segment, the overall growth in the car market is not happening, he said, adding people need more disposable income to bring back growth in the lower end of the market, although the company expects a 14 per cent overall retail sales growth this festive season. “Certainly, the fact is that the market under Rs10 lakh is not growing. In fact, it is declining.
That is a cause of some worry because unless that lower end of the market grows, there is going to be no feeders into the upper market,” Bhargava told reporters in an earnings conference call.
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