Members of the Indian Auto Industry to follow the Maruti Suzuki Way to Recover Losses
As the automotive industry battles economic slowdown, several steps have already been initiated to reverse this phenomenon, including the announcement of various festive season offers.
Along with offering festive season discounts, companies like Maruti Suzuki on September 25 announced a price cut for their automobiles too. After the announcement made by the leader of the Indian automobile market, there are chances of the same being implemented by other members of the market.
Maruti Suzuki announced an immediate Rs. 5000 price cut for its best selling cars that include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza, and S-Cross.
Still, the industry remains in the circle of doubt whether the cut in prices and corporate taxes will lead to an ultimate benefit to customers. Moreover, the government has not yet lowered GST rates for automobiles even after consistent demands by the industry.
Companies such as Piaggio and Isuzu have also announced festive season discounts following the paths of Maruti Suzuki.
As per Maruti Suzuki, the act of price reduction will bring down the cost of acquisition for the customers interacting for the first time. The motive of festive offers is to boost consumer sentiment and revive the market, thus increasing demand and bringing back the industry on track.
Finance Minister Nirmala Sitharaman announced several measures last month with the aim to revive the auto sector from downfall, that included a ban on purchase of vehicles by government department and 15% depreciation on vehicles that will be bought till March 2020. Still, the auto industry requires more measures to come back to its position and recover all the losses. One of these measures includes a reduction in the GST rate on automobiles from 28% to 18%, along with the implementation of the scrappage policy.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.