Return of the small car to draw rivals: Maruti’s Bhargava

Maruti Suzuki India Ltd, which sells two out of every five passenger vehicles in India, has said that the revival in demand for small cars after the goods and services tax cut could prompt even its rivals to reconsider the segment, long written off in favour of sport utility vehicles.

- Nehal Chaliawala

The company, which produces more small hatchbacks than all other carmakers combined, said many two-wheeler users, who were undecided about upgrading to a car, have been encouraged by the 10 percentage point reduction in GST on small cars to 18%.