Maruti Suzuki to continue discounts across all models

In order to improve the sales and lure more buyers, Maruti Suzuki will continue to follow the path of discounts and schemes. Earlier, it was speculated that India's largest automaker will increase its prices, but seeing the slow growth, company has decided to provide discounts rather than price hikes.

Maruti Suzuki India CFO Ajay Seth said, "We offered a discount of Rs 17,500 on an average across models in the fourth quarter (ended March 31). Discounts are going to remain unless the market condition improves.” He further added, "We are getting inquiries. However, the inquiries are not getting converted into sales. Our hope is that when economy recovers these inquiries should get converted into sales.”

Maruti Suzuki is offering discount in the range of Rs 50,500 on the diesel variant of Swift hatchback, while the compact sedan Swift Dzire (diesel) is being offered with benefits of Rs 43,000. Moreover, the CNG variant of WagonR now attracts a massive discount of Rs 72,100. 

When compared to the sales figures of March 2013,  Indian auto-sector witnessed a downfall of 7% while on the fiscal year basis, a drop of 5% was measured. Factors responsible for the slow churning of numbers are degrading Indian economy, increase in fuel prices and depreciating value of Indian currency. In order to improve the sentiments and pump up sales, the government has also reduced the excise duty but that too has failed to provide any significant improvement in the low sales of vehicles. 

Recently, companies such as Mahindra and Mahindra and Honda have increased the prices across their selected models. Honda has raised Rs 11,000 on the diesel model of City while Rs 10,000 is increased on its petrol variant. Replying to the question that if, Maruti would follow Honda Cars India and Mahindra in increasing prices this month, Seth said: "Where is the question of increasing the prices in this weak market? Unless market sentiment changes, we don't have any plan for a price increase."

Among the aforementioned cars, the other Maruti models that been offered with discounts include names such as the SX4 that features Rs 91,500 discount followed by A-Star with Rs 66,500 off, Estilo Rs 61,500, Stingray Rs 63,000, Ertiga Rs 41,500, Ritz Rs 36,500, Omni and EECO having Rs 11,500 as a benefit. Apart from the savings mentioned, the manufacturer is also providing the excise duty benefit on the above stated cars. 

Source: PTI