Amid snail paced auto sales in domestic market, Maruti Suzuki India eyes continuing offering discounts on its cars. During the last quarter of financial year 2013-2014, MSI doled out an average discount of Rs 17,500 on its line-up, company officials say that discounts will continue to be proffered unless the market condition improves. MSI also ruled out possibility of increasing prices across its model range, price hike will happen only once the market condition normalizes The company believes that discounts might help combat stagnancy resulting in increased sales.
Despite price slash owing to excise duty cut on small cars and mid-sized cars by 4% and 3% on large cars, the market condition remained inert. Auto pundits opine that there has been a substantial increase in inquiries however; it did not convert into sales. MSI hopes that with improvement in economic condition, automotive sales might pick up. Excise duty cut proved to wash out MSI’s expectations as the company had to compensate dealers across India a whopping amount of Rs 143 crore during the last quarter of fiscal 13-14.
2013 witnessed steepest fall in annual sales by 9.59 % in last 11 years. The company contemplates to enhance its presence in international markets like Africa, Latin America and Middle East. In domestic market, MSI plans on intensifying its presence in rural markets which includes 90,000 villages. A thick population is located in over 6 lakh villages in India, therefore there is a huge scope in rural market that remains to be explored on a large scale.
The company is also thinking on the lines to invest around Rs 4,000 crores in fiscal 2014-2015 on the induction of new models, marketing and research and development. Among the new launches, Maruti Celerio hatchback was introduced in India during the last quarter of FY 13-14. In current fiscal, Maruti will roll out facelift versions of Swift hatchback and Dzire compact sedan. In C segment, Ciaz sedan will replace SX4, the former also made an appearance at the 2014 Auto Expo Show held in the month of February in Greater Noida. Maruti is expected to launch new Ciaz sedan in India during third quarter of 2014.
