Maruti not passing tax benefits to customers

Maruti Suzuki, India's No. one car manufacturer will not be transferring benefits of lower takes to its customers as company's recently launched new variant of Maruti Swift is not as cheaper as was expected before. On an average company is saving about Rs 40,000 per car because of low tax rates for smaller engine of Maruti Swift. On the other hand company is blaming a cost hike for its decision. Maruti sales accounts for almost 50% cars in India and its small car models like Maruti Alto and Maruti Swift are most sold models in their respective segments. Maruti launched the Maruti Swift 1.2L last month but the expected price cut was not implemented as the base price of the new variant is same as the previous variant of Maruti Swift at Rs 4 lakh.

Society of Indian Automobile Manufacturers (SIAM), the supreme body of Indian automobile manufacturers is refused to comment on the Maruti's move of not passing the tax benefits to its customers. However it claimed that it would pass on lower tax benefits to the customers. But as per market rumors Maruti India has retained the price for its new model despite the lower taxes because the competition in the compact hatchback segment is very tough and company is selling a good number of Maruti Swift right now.