Maruti’s production in the mini car and compact car segments fell by 21 percent to 83,753 units. It was 1,06,090 units in the same month last year. This segment includes cars like Alto, S-Presso, Baleno, Celerio, Dzire, Ignis, Swift and WagonR. Production of the light commercial vehicle Super Carry stood at 587 units last month. This was up from 3,262 units in the same month last year. The company’s wholesale sales declined by nearly nine percent to 1,39,347 units in December.
company plans to keep inventory levels low from this month. Maruti believes that due to the high taxes levied on vehicles in the country, they are out of reach of most people. Earlier, American electric car company Tesla and Toyota Motor have also expressed the need to reduce the tax on vehicles in the country.
Last month, the company’s chairman RC Bhargava had said that the government’s policies are such that cars are considered luxury products which are heavily taxed. He said that due to this, the growth of companies making cars has come down from 12 percent to three percent in the last 12 years. The main reason for this is the bad policies of the government. Most new cars attract a Goods and Services Tax (GST) of 28 per cent. Only 7.5 percent of households in the country own a car. This figure is much less than that of China. In China, about half of urban households and a quarter of rural households own a car. Earlier, Tesla Chief Executive Elon Musk had said that due to high tax in India, it is difficult for the company to import electric cars. He demanded the central government to reduce the tax on imported electric vehicles. However, this was denied by the government.