Maruti doles out higher margins to dealers to boost petrol car sales

It is a well-known fact that demand for petrol cars has been dipping down since a long time now and the credit for this goes to hike in petrol prices. Even the sales of Maruti Suzuki petrol cars are not impressive, therefore to cope up with this demand; India’s largest carmaker has now given a green signal to its dealers to have higher margins in order to enhance petrol car sales. This sudden change in the consumer priority to diesel cars has put the carmaker in dilemma and compelled it to take some serious measure to push its petrol car sales. Now Maruti Suzuki India is offering dealers hiked margin of 10% on the petrol cars, which means the amount comes about to be Rs. 1000 to Rs. 2000 more on the Maruti’s petrol cars, totally depending on the model.

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The models on which the margins have been increased to around Rs. 1000 include Maruti Wagon R, Maruti Estilo and Maruti Alto, while Maruti A-Star petrol variant has an increased margin of up to Rs. 2000. On the whole the amplification in the margin of these petrol cars by Maruti Suzuki India is a smart move by the firm as these this will certainly help the car sales to go up a notch very soon. The more margin on the petrol cars also means that the dealers will be more practical and upbeat in influencing the car consumers to go for petrol cars if in case their monthly usage is low. According to the thumb rule, if your monthly usage is below 600 kms than buying a diesel car doesn’t make any sense, therefore buying a petrol car is the best option.

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The slump in the auto industry made Maruti Suzuki India lose its market share and came below the figure of 40%, which is the lowest in decades. The main reason behind this is the hard-hitting competition in the small car segment of the Indian car market, which has seen so many players of late. These new players have been pretty much successful in chipping away the market share of Maruti India. Furthermore, small cars are gradually losing the market share to the sedan and SUVs in the Indian car bazaar, which turns out to be another aspect that has been working against India’s largest carmaker. Therefore, offering high margins to the dealers to push petrol car sales is one way to get back into the Indian car market with a bang.

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