RC Bhargava Listed Out Key Reasons for Slow Growth of Auto Industry

High taxation, as well as state government's road levy, have driven passenger vehicle cost and dented sales, Maruti Suzuki India Chairman R.C. Bhargava said while speaking at the 61st SIAM Annual Convention here.

Bhargava said that more and more people are now finding it difficult to afford cars due to their high costs.

"The people in this country have great aspiration for vehicles. But the industry has been witnessing comparatively slower growth for the last 18 months. The government and the industry need to take necessary action collectively to revive the sector," Bhargava said.

He also said that Indian customers should get modern vehicles.

"If we follow all the European standards, the vehicle costs may rise. Our focus should be on how to make the vehicles affordable for the masses. If the affordability factor is addressed, the Indian auto industry can certainly recover in the short term," he added.