Maruti Suzuki India Ltd is offering large discount on its vehicles. Maruti is India’s largest passenger vehicle maker seeks to stimulate retail demand during the crucial festival season.
The local unit of Suzuki Motor Corp. had an argument with commercial banks to lower their rates on a vehicle loan, with recent reductions in the repo rate by the central bank, to make it easier for consumers to purchase new vehicles.
Maruti supposes that this step would help to reduce the overall ownership cost of a new vehicle and avert a slump in retail sales for two consecutive festival seasons. In 2018, vehicle manufacturers endured the worst festive season sales in five years, as customers stayed away from showrooms in the aftermath of the bankruptcy of Infrastructure Leasing & Financial Services Ltd (IL&FS). In August, Maruti’s wholesales or factory dispatches fell 36% year-on-year to 94,728 units. Also, the number of vehicles produced at its three plants declined 34% year-on-year to 111,370 units.
Read EquityPandit’s Nifty Outlook for the Week