Maruti Suzuki Chairman Bhargava Says: India will never become a large car Market

Small cars will continue to dominate the Indian car market and share of diesel cars will go down as they will become expensive on stricter emissions norms, feels R C Bhargava, the man who has steered Maruti Suzuki from a fledgling company in the early eighties to emerge as one of the country's biggest car brands. In an interview to Times of India, the chairman of Maruti Suzuki said, "I do not see India ever becoming a market for large cars. The infrastructure in the country will not be able to support long, broad cars. Also, rules and regulations of the future will be against big cars."

He also commented on the recent furore surrounding diesel cars, with the Supreme Court banning the registration of luxury diesel cars in the National Capital. He said, "Once the stricter BS5 norms kick in, diesel cars will become much more expensive. So, the share of diesel cars will come down."

The chairman of Maruti Suzuki also feels a full recovery of the Indian economy is still some time away even as the Modi government works towards a turnaround. For the corporates, he has a piece of advice: "Do not engage in ostentatious consumption and do not be seen with people who are violating trust and are defaulters".

Further commenting on the government's policies, he said, "There have been improvements in some areas such as allocation of natural resources like coal where there is now predictability. Also, environmental clearances are not as bad as they used to be. However, what is required is accountability in government functioning, while rewarding performance," and added, "This needs to be backed by fair and effective enforcement. Besides, there is a need to have trust between the government and the private sector.

RC Bhargava also advocated a more professional approach on the part of the decision makers. "We have to understand that the system of jugaad is not something that we need to follow. There are no systems and processes and we cannot have last-minute decisions based on jugaad. Also, there is a need for reforms in the education system and we need to encourage private sector investments to counter the shortage of resources," he said.

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