At Maruti Suzuki’s annual general meeting, Chairman RC Bhargava urged the government to expedite GST reforms, warning that fresh US tariffs could disrupt multiple Indian industries and erode the purchasing power of small car buyers.
To be sure, the Narendra Modi government has already proposed lowering the GST on Maruti Suzuki’s bestselling small cars. However, the additional US import duties—effective 27 August—have raised total tariffs to as high as 50% on goods like garments, gems and jewellery, footwear, sporting goods, furniture and chemicals. The move threatens thousands of small exporters and jobs, a vital customer base for the carmaker.
In his Independence Day address on 15 August 2025, Prime Minister Modi announced India’s biggest tax overhaul since the rollout of GST in 2017. Consumer, auto and insurance firms are expected to benefit most when product prices fall from October.
The Centre has suggested cutting GST on small cars from 28% to 18%, while insurance premiums could see rates drop from 18% to as low as 5%—or even zero.
