If you have been planning to buy a new car this festive season there is some good news. The country’s top auto maker, Maruti Suzuki has announced reduction in the prices by Rs 5000 of various models in response to the reduction in the corporate income tax rates announced by the government last week.
The models being included for this latest price reduction include Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross. All variants of these models will be eligible for the Rs 5,000 price cut. The company has also clarified that this quantum of reduction in the prices of the cars ex-showroom will be over and above the other offers already in operation on each of the models.
The new prices will be applicable from September 25, 2019 across the country. “The Company is optimistic that the price reduction will bring down the cost of acquisition especially for the entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand,” the company said in a statement.
These are promotional offers like exchange bonuses and other benefits and range from Rs 40,000 to Rs 1,00,000 depending on the model.
Some of these offers include benefits of up to Rs 1 lakh on Vitara Brezza. The company is also offering exchange bonus and a complimentary 5-year extended warranty package or its cash equivalent worth up to Rs 90,000 for the diesel variant of Maruti Suzuki Dzire. The petrol model also comes with benefits up to Rs 60,000 across all variants.
The company is also offering cash benefits on Maruti Suzuki Swift, Alto and Alto K10, Celerio, Eeco and Wagon R.
Interestingly, the initial reaction from the company’s Chairman, RC Bhargava was that the real impact of the tax reduction was less than 1% when calculated in terms of the price of the cars being sold. This he had mentioned during interviews to news channels. However, the company appears to have gone ahead and made this decision to offer a price cut.
Facing several months of drop in sales compared to the previous years, Maruti expects to close the month of September with a higher sales figure.
The Japanese company also plans to launch a new model, S-Presso, a hatchback, close of the heels of the multi-purpose vehicle XL 6. The company will be adjusting upward, the production figures too for the month to meet the market requirements.