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Maruti Suzuki Luring Customers With Huge Discounts
According to Maruti Suzuki, Petrol car buyers are relatively immune to frequent increases in petrol prices because they don’t drive very extensively and would rather save the incremental payment needed to buy a diesel vehicle by going in for petrol cars. The carmaker, which was hit by a huge decline in petrol car sales is trying to attract customers with huge discounts.
Discounts have been at the highest at Maruti Suzuki in the March quarter with the country's largest selling car, Alto being offered with a discount of between Rs 22,000 to 25,000. Further more, the average discounts for all Maruti Suzuki cars including diesel cars accounted for Rs 13,250.
Diesel car preference in the market has been so high hitting the carmaker's market share and putting all its diesel cars on a long waiting list. Maruti Suzuki currently has a backlog of 1.8 lakh diesel vehicles.
Maruti Suzuki Chief Financial Officer Ajay Seth pointed out that one of the reasons for the company’s profit being hit was higher discounts, especially in the March quarter. The company's fourth quarter net profit had fell 3 per cent accounting to sluggish sales growth and tighter margins.
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