No requirement for big discounts on cars for now: Maruti Suzuki chairman
Will carmakers need to resort to deep discounts to spur sales amidst the COVID-19 pandemic? Maruti Suzuki Chairman RC Bhargava feels that immediate measures will not be required. Speaking to the media after the announcement of the company’s annual results, RC Bhargava said, “The question of discounts depends on market conditions, I don’t think we will have a surplus of vehicles, at least for the next month or two. So, I don’t see any large requirement for big discounts because the demand will be higher than the supply. Going forward, we don’t know what the situation will be, and the adjustments will happen for discounts according to market situation that changes every month.”
Like every other carmaker in India, Maruti Suzuki had zero sales in April 2020, due to the COVID-19-related lockdown across the country. The carmaker has gradually begun restarting its production facilities, and sales and service outlets in a phased manner, in line with government guidelines. Over 5,000 new Maruti Suzuki cars and SUVs have been delivered in India from the brand’s recently reopened outlets. The company has confirmed that over 2,000 workshops have been reactivated as well. However, the workload is low, due to the lockdown still in force across many parts of the country.
Maruti Suzuki typically releases a monthly list of dealer-level discounts and benefits for most models on sale. Should demand not pick up in the coming months as anticipated, buyers are likely to be lured into showrooms with some tempting deals.