HomeNDTV CarAndBike - Latest News

Maruti Suzuki Is Considering To Reduce Average Discounts Across Its Product Range

SHARE:

India's largest carmaker- Maruti Suzuki is re-evaluating its discounting strategy as its profit slumped by 17 per cent in the third qua...

India's largest carmaker- Maruti Suzuki is re-evaluating its discounting strategy as its profit slumped by 17 per cent in the third quarter despite a mere decline of 0.01 per cent in its sales in the same period. Heavy discounts seem to have taken a toll on the company's earnings forcing it to look at reducing the discounts it offers across its product range. Moreover, the company also believes that discounting is not a good practice to sell cars as customers' expectations increases and they demand discounts throughout the year.

Also Read: Maruti Suzuki Aims To Export 25 Per cent Of Its Annual Production Volume

Speaking to the media, R.C. Bhargava, Chairman- Maruti Suzuki India Limited said, "The policy of discounting requires a re-look. It is not a good way to sell cars by giving high discounts. Once you start offering high-discounts, customers' behaviour changes and they expect discounts round the year. We need to bring discounts down." Sales during the third quarter weren't galloping as it usually does for Maruti Suzuki and that was more because of a lukewarm festive season. During the festive season, the entire auto industry had a sluggish growth period due to several macro-economic factors, rising fuel prices being the major one coupled with onetime payment of the insurance premium.

Financial Quarters Average Spent On Discounts
FY2018 Q1 Rs. 16,600
FY2018 Q2 Rs. 15,200
FY2018 Q3 Rs. 17,900
FY2018 Q4 Rs. 13,900
FY2019 Q1 Rs. 15,200
FY2019 Q2 Rs. 18,800
FY2019 Q3 Rs. 24,300

In a bid to clear inventory, Maruti Suzuki offered an average discount of Rs. 24,300 in the third quarter of FY2019 which was significantly higher than several previous quarters. The company had an average discount spent of Rs. 15,200 per model in the first quarter of FY2019 which increased to Rs. 18,800 in the second quarter. Moreover, in the last quarter of the previous fiscal year (FY2018), Maruti Suzuki spent just Rs. 13,900 on discounts per model.

Source: Business Standard



from NDTV CarAndBike - Latest News http://bit.ly/2FTmZua
Name

CarandBike - Latest News,3891,NDTV CarAndBike - Latest News,4668,Web Bike World,393,webBikeWorld,826,
ltr
item
bikes: Maruti Suzuki Is Considering To Reduce Average Discounts Across Its Product Range
Maruti Suzuki Is Considering To Reduce Average Discounts Across Its Product Range
bikes
https://bikemotorbike.blogspot.com/2019/01/maruti-suzuki-is-considering-to-reduce_28.html
https://bikemotorbike.blogspot.com/
http://bikemotorbike.blogspot.com/
http://bikemotorbike.blogspot.com/2019/01/maruti-suzuki-is-considering-to-reduce_28.html
true
6291399089362058434
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy