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Maruti Suzuki Will Not Open a Finance Arm
Mr Kanwaljeet Singh, Maruti Suzuki's director (Corporate) while speaking to this reporter during the launch of the new Swift said the carmaker did not even consider launching its own finance arm. He said: “Maruti Suzuki's expertise is in building top quality cars and we would like to let the experts in finance handle the car loans. Our company has brainstormed about a finance division and never found a credible reason supporting it."
Mr. Singh when asked if Maruti Suzuki could lose sales due to not having its own car loan division said offering cars at low interest rates was only a short term solution and Maruti Suzuki always looks at long term planning. However he did accept the recent increase in interest rates was affecting sales. He also expressed hope that the coming festive season would help boost sales.
When asked if Maruti Suzuki was planning to boost sales, Mr Singh said discounts was a solution used by carmakers to clear increasing stocks. He said Maruti Suzuki always monitored inventory levels at showrooms and production was modified to respond to changing market situations. It may be recalled that Maruti Suzuki reduced production the A-Star, Ritz and Wagon-R after thir stocks started piling up in showrooms.
Maruti Suzuki recently launched the new Swift which has received more than 50,000 bookings even before its launch. The Maruti Suzuki models whose sales are declining are the A-Star and Ritz.
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