Discounts drive Maruti’s Dec retail sales to all-time high
ent Suzuki Motor Corp. at the end of the year, and was forced to offer deep discounts since the second half of 2018 was quite a disaster for the auto- mobile industry.
The company has corrected production of vehicles in the last two months and shut its plant for a week in December for annual maintenance.
“The January wholesale numbers that will be reported by the company will give an actual picture of the reduced inventory. Apart from the huge discounts, Maruti’s retail sales numbers also point towards the slight recovery in the customer sentiment,” said the second person.
According to Avik Chattopadhyay, founder of brand consultancy firm Expereal, retail sales numbers in December have always been healthy due to the high discounts offered and also since customers don’t want to buy vehicles manufactured in the previous year as that would mean a 10-15% reduction in resale value.
“It is a good strategy adopted by the company because to sell these vehicles in 2019, the discounts required to attract customers would be almost double, since Indian customers don’t want to buy vehicles manufactured in the previous year unless discounts are steep,” explained Chattopadhayay.
Maruti offered discounts of up to ₹90,000 on the new Ciaz sedan and the S–cross crossover, among others.