Maruti Suzuki discounts could increase in coming months
This being the fact, Maruti Suzuki India Limited (MSIL), leading automakers in the country could enhance discount offers in the months ahead according to Nomura, a global financial services firm.
In the March quarter, MSIL offered discounts to the tune of INR 15,000 per vehicle as compared to discounts of INR 20,500 offered in the December quarter. The discounts were declined due to the rise in demand of their cars like Swift, Ciaz and DZire. The another reason discounts were decreased, was because of the fall in incentives of the petrol variants.
Lowered discounts on petrol vehicles were due to the disparity in prices between petrol and diesel which has caused buyers shifting affinity from diesel to petrol powered vehicles. This proportion is at 70 percent for petrol cars and 30 percent for their diesel powered counterparts.
Speaking about discounts, Maruti said that they are purely market driven. They did not confirm whether they will increase or decrease in the future.
The reason discounts are expected to increase over the next few months, is because Maruti will launch a range of new products, which will be in completely new segments. Maruti XA Alpha launch in the SUV segment will be followed by launch of the SX4 S Cross (Across), a small LCV and a premium hatchback named Fronx (YRA). But, over the long run, discounts are going to decrease, adds Nomura.
Despite of lowering discounts, in April 2015 the company sold a total of 1,11,748 units as compared to 86,196 units in April 2014. Domestic sales increased 27.3 percent to 1,00,709 units as against 79,119 units sold in the same month of the previous year. Sales of cars in the mini segment increased 35.9 percent while sales of compact cars increased 8.7 percent during the past month.