Maruti Suzuki Chairman Downplays Tariff-induced Recession Fears, Says India’s Auto Exports Safe

Maruti Suzuki India’s Chairman RC Bhargava today dismissed fears of a global recession due to rising tariffs, and insisted India’s car exports won’t be affected as it has limited exposure to the US.

“I don't think the car industry, especially our exports, is going to be affected. We are not exporting to the USA...I am not that pessimistic that the global market will go into recession and people will hoard their money and will not buy,” Bhargava said in a media call held to discuss the company’s financial performance for the March quarter.

"I think all of these things are going to get worked out in the next 2–3 months...There might be some slight slowing down in global growth rates, but I don't think it's going to be anywhere near a recession,” he said.

On the issue of rising tariffs globally—especially in light of the United States’ more protectionist trade stance, Bhargava said the segment his company catered to is not going to be adversely affected by the developments.

He also downplayed concerns regarding Maruti’s international business, pointing out that most of Maruti’s export destinations are developing nations that lack domestic auto manufacturing capabilities.

Maruti Suzuki, India’s largest passenger vehicle manufacturer, has been steadily increasing its export footprint, targeting regions in Latin America, Africa, and Southeast Asia.

“The countries where we export are countries which actually want these cars because they don't have an industry,” he said.

Bhargava contrasted the US position with that of these markets: “The USA has a car industry which is trying to grow, increase output, and create jobs. But countries that don't have a car industry—due to their size or other constraints—will always need to import vehicles. They are unlikely to impose 100% barriers to imports.”

In the financial year 2024-25, Maruti Suzuki registered record total exports of 332,585 units, up 17.5% over the previous year’s exports of 283,067 units. Fronx, Jimny, Baleno, Swift and Dzire were the highest exported models during the year. The automaker accounted for nearly 43% of the country's total vehicle exports.