Maruti contemplates to roll out more discounts to ramp up sales
Published On Jul 27, 2011 12:47 PM By Ritesh for Maruti Swift 2014-2021
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India's biggest car manufacturer Maruti India said that the sales figure of the company shows a increase of 18% in the net profit in the first quarter of the year. At the time when the Indian market has seen a slowdown due to the increase in interest rates and fuel prices, Maruti India has still made unexpected profits which are much higher than what company made in the same time period last year.
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Ajay Seth, chief financial officer of Maruti Suzuki India commenting on the increase in the repo rate by 50 basis points said that outlook remains to be dull as there is regular increase in the fuel prices and interest rates. This regular increase affects the minds of the people and force them to think twice before buying.
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Maruti India on Tuesday said that they have made a net profit of Rs. 549 crore in the first quarter which is more than Rs 465 crore that the company made at the same time last year. It also reported that car sales also climbed 3.3% to Rs. 8,320 crore. This increase in the sales at the time where the market is seeing a slowdown is mainly due to the the heavy discounts that the company offered to the buyers. Mr. Seth also added that these discounts are going to be higher in the second quarter to maintain the profits.
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With these discounts the company also have some new models to be launched to in the next half of the year. The new Maruti Swift is also proposed to be launched in the month of August. The production of the old Swift has already been stopped and the for the launch of the new Maruti Swift the production at the Manesar plant has also been increased. Keeping in mind the increase in the fuel prices in the country and increase in demand of the diesel cars, the company is also looking to increase the diesel engine capacity. The Diesel car contribution to the sales of Maruti Suzuki India increased to about 21% in the first quarter of the year than 19% in the earlier one.
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