Speaking at the company’s 44th Annual General Meeting in New Delhi, Bhargava said the 50% tariff imposed by the US on Indian goods such as textiles, gems, footwear and chemicals threatens small exporters and jobs, which form a crucial customer base for the carmaker.
“It is our duty as Indians to do our very best to promote and maintain our dignity and respect and not give in to any kind of bullying in this matter… the nation has to stand united,” Bhargava told shareholders.He added that lowering goods and services tax (GST) rates on small cars would be key to reviving demand in the domestic auto sector, which has been under pressure from global trade headwinds.
“We are all hopeful that the proposal which the Prime Minister made will result in the GST of small cars reducing to 18% but we have to wait till the official announcement is made,” he said.
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The government has suggested a two-tier GST structure with 5 and 18% slabs, alongside a 40% special rate on select items, as part of the country’s biggest tax overhaul since 2017. Prime Minister Narendra Modi hinted at the reforms in his Independence Day speech, with consumer, auto and insurance companies likely to benefit from lower levies when they take effect from October.
Bhargava said that a tax cut on small cars, coupled with reforms, could spur industrial activity, accelerate growth in the car market, and create more employment opportunities at a time when external tariff pressures are weighing on parts of the Indian economy.
(With PTI inputs)
