Maruti Suzuki’s R C Bhargava calls 1991 liberalisation the auto sector’s turning point
The Maruti Suzuki chairman says policy support and manufacturing advances reshaped India’s auto industry, while warning that small-car affordability, EV battery supply, clean power and weak R&D investment remain barriers to global competitiveness.
What happened
Maruti Suzuki Chairman R C Bhargava says liberalisation, policy support and manufacturing gains transformed India’s auto sector. He flags affordability
Key facts
- 1983
- 1991
- 1993
- 35 years
- 2019
- September 2025
- 1987-88
- 10 years
- 2014
Why this matters
Corporate development teams should prioritize partnerships or acquisitions in battery materials, clean-energy access and vehicle technology to close India’s competitiveness gaps.
What to watch
- Any GST-rate revision or targeted incentive for small cars and first-time buyers.
- Monthly growth in entry-level hatchback and compact-car sales versus SUVs.
- New battery-cell, recycling, critical-mineral or power-electronics investments by Indian OEMs and suppliers.
- Evidence of higher automotive R&D intensity, patent filings and domestic development of EV platforms and software.
- Renewable-power availability and pricing for manufacturing clusters, plus progress on charging infrastructure.
- Import dependence trends for battery cells, semiconductors, permanent magnets and EV drivetrain components.
- Maruti Suzuki and peers intensify lobbying for small-car tax relief, lower ownership costs and demand-side incentives.
- Automakers expand partnerships or joint ventures for battery cells, battery recycling, power electronics, semiconductors and vehicle software.
- Large OEMs increase renewable-energy sourcing for plants and explore captive clean-power arrangements to lower EV lifecycle emissions.
- Suppliers face greater localisation requirements, with investment concentrating in high-value EV components rather than conventional assembly capacity.
- Government policy shifts from broad production-linked incentives toward support for R&D, critical-mineral security, charging networks and domestic technology development.