Maruti Suzuki offers zero down-payment and exciting offers on cars to boost demonetisation-hit sales, it is valid till 30th November
Auto industry in the country is hit by the demonetisation move of the central government. The vehicle sale in domestic market is expected to see 25% slowdown, due to the ban on Rs. 500 and Rs. 1,000 currency notes. Almost every car maker present in the market is suffering from lowered car sales. Meanwhile Maruti Suzuki is offering zero down-payment facility and exciting cash discounts to boost its sales.
To bring back the customers to showroom, India’s largest automaker Maruti Suzuki is offering the facility of zero down-payment on several of its models and the offer is available till 30th November, 2016. Apart from that, Maruti Suzuki is also offering direct cash discount on several popular models.
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The cash discount ranges from Rs. 32,000 to Rs. 1 lakh. The company is offering Rs. 32,000 discount on Ertiga, while the Celerio hatchback is offered with Rs. 1 lakh cash discount. Other popular models like WagonR, Alto 800 and Alto K10 is available with cash discounts of Rs. 60,000, Rs. 55,000 and Rs. 52,000 respectively.
A big chunk of the car market is driven by cash and with the ban implemented on Rs. 500 and Rs. 1,000 currency notes, it is nearly impossible for customers to pay for the cars at present in cash. This has directly affected the passenger car sales across the nation. Earlier SIAM estimated that, the passenger vehicle sales in India will touch 3 million marks in FY 2017, but with the market severely hit by demonetisation that has become very unlikely.
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Around 75%-80% of vehicle sales are financed in the urban areas in India, but the number is lesser in rural areas across the country. With around 35% of passenger car sales coming from rural markets, where cash transaction happens at a larger amount, auto industry fears to take a severe blow. The percentage is even higher for two-wheeler market, which is around 50%. While Maruti Suzuki is already offering such offers and cash discounts to attract customers, it is to be seen whether other car-makers also follow the same.