Just In
- 39 min ago Ather Rizta Pre-Bookings Now Open – Ola S1 & TVS iQube Rival
- 3 hrs ago Nissan And Renault To Launch Four New SUVs In Strategic Collaboration
- 4 hrs ago Suzuki V Strom 800 DE Launched In India At Rs 10.30 Lakh – The No-nonsense Adventure Motorcycle
- 5 hrs ago Xiaomi SU7 Electric Sedan Variant Details – All You Need To Know
Don't Miss!
- Technology Good News for GTA Fans: GTA 6 Release Not Delayed to 2026 After All
- Movies R Madhavan: The Actor with the Midas Touch - From Box Office Gold To OTT Success
- News CBI Court Convicts Seven In 2005 Raju Pal Murder Case
- Finance 1 Share Split To 5 Shares: Luggage Stock VIP Turns Rs 4 Lakh To Rs 13 Lakh; Prabhudas Upgrades To BUY
- Sports RCB vs KKR, IPL 2024: 'I want to beat RCB even in my Dreams', Gautam Gambhir's Explosive take on 'Won It All' Bengaluru Boys
- Education Karnataka KCET 2024: Registration details and more
- Lifestyle Navratri 2024 Date In April: When Will Chaitra Navratri Festival Start? Significance Of 9 Days, Deets Inside!
- Travel Explore Tamil Nadu's Diverse Wedding Venues
Maruti Suzuki May Cut Prices Following Corporate Tax Reduction
Maruti Suzuki India Limited is considering revising prices of its domestic portfolio thanks to the reduction in corporate taxes. Maruti's Chairman, RC Bhargava, said that the company was looking at a solution and that an announcement will be made in a day or two. He also said that the brand cannot afford to wait for a month.
Companies like Hyundai, Toyota, and Honda however, have said that they will offer only discounts during the festive season. Offers and benefits have reached higher levels than before, and offers are provided across a majority of segments.
Shekar Viswanathan, the Vice President of Toyota Kirloskar Motor, thinks that the lower corporate tax rates will help improve cash flow for brands but the impact on the pricing of products is uncertain.
Better cash flows can result in more investments toward research & development, CSR activities, shareholder benefits, and product development.
Companies like Honda Cars India feel that the existing offers and discounts are good enough at the moment and there is no scope for price cuts across its domestic portfolio.
Hyundai Motor India Limited however, has offered discounts to customers and are currently studying the difference the reduced taxes will bring but passing on benefits to customers is highly unlikely. The company feels that multiple factors have to be considered from the point of overall profitability.
An increase in prices have added to the slowdown in the auto industry. Manufacturers feel that any reduction in prices via offers & discounts or a revision in prices will help turn sales around.
Thoughts About The Possible Reduction In Prices
This may a critical move for manufacturers. As is, the industry is still in a slowdown and a reduction in prices of vehicle could help increase sales. We think it is great initiative by Maruti Suzuki, and we hope other manufactures get on the bandwagon soon. We also feel that manufacturers will offer more discounts all the way up to March 2020. We hope things turn around for the industry soon.