“Minimal Impact on Car Market at Present”: R C Bhargava

India’s car market is yet to see any meaningful disruption from the ongoing geopolitical tensions in West Asia, with demand and production holding firm for now, according to R C Bhargava, Chairman of Maruti Suzuki India Limited.

Speaking to reporters after the company’s FY26 earnings call, Bhargava said the situation on the ground remains stable. “There is minimal impact on the car market at present, in terms of customer demand and our ability to produce cars,” he noted.

His comments come at a time when the industry is closely watching the fallout of the West Asia crisis, particularly its impact on crude oil prices and supply chains. While global uncertainty has increased, Bhargava suggested that it has not yet translated into any visible slowdown in the domestic market.

The Indian passenger vehicle market grew by over 8.8% to 4.7 million units, and if disruption does not significantly affect the volumes, the country is on course to hit the 5 million units milestone. India is already the third largest market in the world, one of the rare bright spots in the world. The GST cut from the Government of India helped the car market come back on a strong growth momentum, and the centre is very keen that the growth momentum is sustained despite global disruption.

However, the comfort may prove temporary. Input cost pressures are already pushing vehicle prices higher, and a sustained spike in fuel prices could begin to erode demand, especially in entry and mid segments where affordability remains critical.

Adding to the uncertainty, market experts point out that fuel prices could firm up after the election results, a move that may further stoke inflation and, in turn, push vehicle prices higher. That could create a double squeeze on consumers already grappling with rising ownership costs.

Much will depend on how long the West Asia tensions persist and how fuel pricing trends play out domestically. If energy and commodity prices continue to harden, the current stability in demand could come under pressure, even as automakers walk a fine line between pricing discipline and volume growth.

With inputs from Ketan Thakkar and Mugdha Mishra