‘Stand United, Don’t Give In To Bullying’: Maruti Suzuki’s R C Bhargava On US Tariffs; Welcomes GST Reform For Small Cars

Maruti Suzuki India Chairman R C Bhargava has called for national unity in the face of the United States’ decision to impose 50 per cent punitive tariffs on Indian products.

Addressing shareholders at the company’s 44th Annual General Meeting on Thursday, Bhargava said that the tariffs, which came into effect on Wednesday, threaten India’s exports and employment in several labour-intensive sectors.

What Maruti Suzuki India Chairman R C Bhargava Said?

“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,” he urged.

The new tariff regime is expected to impact key export sectors such as shrimp, apparel, leather, footwear, gems and jewellery, and diamonds.

These industries are not only vital for India’s export basket but also provide large-scale employment, particularly in small and medium enterprises.

Bhargava said that the tariffs had triggered turmoil across global markets, underlining the uncertainty caused by trade policies under US President Donald Trump.

“You’re all aware of the global uncertainty that has been caused in recent months. President Trump has in many ways, forced nations to rethink conventional policies and relationships. Personal use of tariffs in diplomacy is being seen for the first time,” he told the shareholders.

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GST Reform a Positive Step

Turning to domestic economic reforms, Bhargava welcomed the government’s announcement of a potential restructuring of the Goods and Services Tax (GST), calling it a “major economic reform.”

He expressed optimism that the GST rate on small cars could be reduced from the current 28 per cent to 18 per cent, which would provide relief to consumers and boost demand in the automobile sector.

“We are all hopeful that the proposal which the Prime Minister made will result in the GST of small cars being reduced to 18 per cent, but we have to wait till the official announcement is made,” he said.

The Centre has proposed a simplified two-tier GST structure of 5 per cent and 18 per cent, along with a special 40 per cent slab for a select few “sin goods” such as tobacco and pan masala.

Currently, GST is levied at four rates—5, 12, 18, and 28 per cent—with luxury and demerit goods in the highest bracket.

Government sources have indicated that almost 99 per cent of goods in the 12 per cent slab could be moved to 5 per cent, while nearly 90 per cent of items in the 28 per cent slab are proposed to shift to 18 per cent.

Consumer goods in the 28 per cent bracket are likely to benefit from this change, reducing the overall tax burden on households.

GST Council to Decide in September

The 56th meeting of the GST Council will be held on September 3–4, where the proposals are expected to be discussed in detail. The announcement follows Prime Minister Narendra Modi’s Independence Day speech, in which he promised a “big Diwali gift” for citizens in the form of a major GST reform.

For the automobile industry, which has been facing sluggish demand, a cut in GST for small cars could serve as a strong stimulus. Bhargava highlighted that recognising the needs of lower-end consumers was a welcome step by the government.