Dealers To Get More To Sell Maruti's Petrol Cars

Published: Monday, February 13, 2012, 14:12 [IST]

Maruti Suzuki has been the country's leading carmaker since many years. But its market share has shrunk dramatically in the past three years. The carmaker which dominated the market with more than 60% has seen its market share come below 40% for the first time. The main reason for this decline is said to the drop in sales of its petrol cars.

To arrest the slide in sales as well as its market share, Maruti Suzuki is now pushing its dealers to drive up petrol car sales. The carmaker is offering its dealers an additional commission of ten per cent for every petrol car sold. This is the first time the company has increased its commission in a decade.

Maruti Suzuki dealers will now get Rs.1,000 extra for every Wagon R, Zen Estilo and Alto sod. The commission will increase to Rs.1,500 for the Ritz and SX4 and it increases further to Rs.2,000 for the A-Star. The A-Star has boon one of the poorest performing cars in Maruti's line up.

The carmaker has said the increase in commission to its dealers was made in line with the increased prices of its cars. However, it is very much clear that Maruti Suzuki wants its dealers to push petrol car sales. It is struggling to deliver as many diesel cars as the market demands and is trying to compensate by pushing petrol car sales.

Demand for petrol cars has decreased greatly in the past two years while demand for diesel cars has been on the up swing. Maruti Suzuki has been a predominantly petrol car driven company it is obvious that it is currently struggling to match demand.

Maruti Suzuki's commission to its dealers has been low compared with its competitors. While companies like Hyundai and Volkswagen were offering commission up to 7%. Maruti has been offering 4% but the dealers were happy due to the high volume of sales.

Article Published On: Monday, February 13, 2012, 12:51 [IST]

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