Maruti Suzuki offers discounts on cars to fight against rising insurance premiums

Car manufacturers such as Maruti Suzuki and Hyundai were forced to increase their discounts before the holiday season to thwart the dark market and seduce buyers. High fuel costs, rising insurance rates and borrowing rates have had an impact on retail sales.

Automotive market leader Maruti Suzuki announced it was offering more vehicle reductions in the second quarter ended September 2018 compared with the same quarter

The average reductions offered by Swift manufacturers , Dzire and Baleno increased by 23 percent to Rs. 18,750 per vehicle, an increase of Rs. 3,500 per vehicle from last quarter.

Hyundai dealers, the country's second largest pbadenger car maker, also reported an increase in discounts to attract buyers.

Maruti Suzuki recorded a first decline in net profit in 17 quarters in September, hit by 1.5% decline in sales to 484,848 units. The company has indicated, however, that it is committed to generating double digit growth for the year.

"We are on track to achieve double-digit growth in the first half of the year. Festival sales were stable, but reservations are good and we expect demand to increase during Dhanteras and Diwali, "said RS Kalsi, Maruti Suzuki's Executive Director (Marketing and Sales).

Sales during the holidays (usually a 2-week period) typically represent 30% of the 3.28 million time stamps recorded by the industry in a year. Manufacturers are trying to offset the declines of previous months by increasing sales volumes during festive days through rebates.

In addition, Maruti Suzuki seeks to improve the localization of components and works

Ajut Seth, Financial Director, Maruti Suzuki, said: "The localization of components presents technological challenges. But we are looking with our parent. There is also a definitive plan on what we are going to locate in the next year. And it's a big chunk that we are trying to locate. As the direction is clear enough, you can not rely on high import content although we are far less than the industry. "

As regards the payment of royalties to his parent company, 40% of Maruti Suzuki's volumes pbaded into the balance is still in the Japanese currency, with Brezza, Dzire, Swift and Ignis moving to the rupee. in the second quarter, Maruti's royalty payments were 5.7%.