Maruti Suzuki India, the top automaker in India, reported home sales of 135,962 vehicles in May 2025. The number of vehicles sold domestically by the manufacturer in May 2024—144,002 units—represents a 5.58% decrease from the previous year. On the other hand, the number of the automaker's exports increased by 79.7% during the month, from 17,367 to 31,219.

As the trend continued, the passenger car sector for the carmaker, which includes models like the Maruti Suzuki Alto K10, Swift, Dzire, Ciaz, and others, experienced a decline of 12.81% year over year, falling from 78,838 units in May 2024 to 68,736 units in May 2025. In the meanwhile, the utility vehicle industry, which includes models like the Maruti Suzuki Brezza, Grand Vitara, Ertiga, and others, saw a modest rise of 1.2% year over year, from 54,204 units in May 2024 to 54,899 units in May 2025.

In an earlier press conference, RC Bhargawa, Chairman of Maruti Suzuki India, emphasized the necessity of reviving the small car market in order to ensure the passenger vehicle industry's continued expansion. He predicted that the Indian passenger car market would continue to grow slowly unless the small car sector expanded.

Reducing taxes to stimulate the industry

Bhargava recommended the implementation of tax regimes that are uniquely suited to small vehicles—lower taxes than those in other sectors—in order to recapture momentum in the market for compact automobiles. He advised India to take a similar strategy, comparing it to Japan's Kei cars, which are subject to less stringent laws and lower taxes. India could see a shift from two-wheelers to four-wheelers by making small vehicles more accessible and inexpensive, which would help to accommodate the nation's 300 million two-wheeler users, the chairman stressed.

Unless these essential policy reforms are implemented, Bhargava cautioned that mass automobile ownership will continue to be an unattainable goal for the majority of Indians, and India's auto sector will continue to suffer from slow growth.

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