Overview

• Maruti Suzuki plans to increase exports by 20% this fiscal to sustain production and profitability amid weak domestic demand.
• Small car sales declined by 9%, highlighting affordability challenges for 88% of households in India, as only 12% earn enough to afford cars priced above Rs 10 lakh.
• Tax relief on incomes up to Rs 12 lakh, introduced in the FY26 budget, has proven insufficient to revive demand for small cars.
• Overall passenger vehicle sales growth was limited to 2% this year, with projections of just 1–2% growth for the next fiscal year.
• Congress leader Jairam Ramesh attributes the slowdown to widespread income stagnation, emphasizing its impact on the broader economy.