Maruti Suzuki cuts car prices, days after govt slashes corporate tax.

Days after the government cut corporate tax rate, Maruti Suzuki, the country’s biggest car-maker announced a reduction in prices. Maruti Suzuki has reduced the price of select models by ₹5,000 (on ex-showroom price), effective from today. The price cut will be applicable on all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross, Maruti Suzuki said.

This reduction of price will be over and above the current promotional offers for the company’s vehicle range, Maruti said.

Facing worst sales slowdown in the last two decades, many car-makers have lined up hefty discounts and other offers to lure buyers. The biggest car-maker Maruti Suzuki is offering discounts and other benefits in the range of Rs 40,000 to Rs 1,01,200 on its popular models, news agency IANS reported.

Welcoming the government’s initiative to revive the demand in automobile industry, Maruti Suzuki India said it has decided to “proactively and voluntarily share the benefits of corporate tax reduction with its customers.”

Maruti Suzuki also said that it is optimistic that the price reduction will bring down the cost of acquisition especially for the entry-level customers. “This announcement around the festive season will help boost customer sentiment and revive the market to create demand,” the car-maker said.

Earlier this week, Maruti Suzuki chairman RC Bhargava said that the car-maker expects sales of its cars in September to be higher than the previous month. Domestic sales of Maruti Suzuki fell 34.3% in August, one of the biggest monthly drops in sales in recent times. Indian auto sales fell for the 10th straight month in August, marking one of the worst slowdowns in the industry’s history.

The nine-day Navaratri festival, which typically witnesses an uptick in sales, begins on September 29.

Maruti Suzuki will launch its small hatchback — S-Presso — on 30 September, as the company looks to revive sales during Navratri and Diwali on the back of new products. Last month, Maruti had launched XL 6, a multipurpose vehicle, in August that will be sold from the Nexa chain of premium dealerships.