Dis­counts drive Maruti’s Dec re­tail sales to all-time high

Mint ST - - COR­PO­RATE -

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.

RAMESH PATHANIA/MINT

Maruti of­fered dis­counts of up to ₹90,000 on the new Ciaz sedan and the S–cross cross­over, among oth­ers.

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