Price Cut To Boost Passenger Vehicle Sales
The Month of June was not one of the best months for the domestic passenger vehicle market. Barring Maruti Suzuki (MSIL), which saw a mere growth of 1.2 per cent in domestic sales, most of the manufacturers posted negative growth last month.
Toyota saw an 85 per cent drop in sales while Hyundai and Mahindra & Mahindra saw 5.6 per cent and 3 per cent drop respectively.
However, as the country has now adopted its biggest taxation reform, the GST, from July 1st sales of four-wheelers are expected to rise as major manufacturers have announced price cuts across its line-up.
Country's largest carmaker Maruti Suzuki reduced prices of some of its vehicles by 3 per cent on Saturday (July 1st), passing on the benefit of lower taxes for certain segments of vehicles to consumers.
A South Delhi based MSIL dealer said, "Consumers have been asking us about a price cut for the past one month. Now the new price list is out, we are expecting demand to shoot up in the coming days." The dealer added that there is the significant increase in a number of enquiries in the first two days of GST.
A similar quote was given by a Toyota Kirloskar dealer showroom. The showroom said that last month the company had reduced dispatches to showrooms to minimise financial burden and also consumers were expecting the price cut in two of its most popular model- Innova and Fortuner.
Toyota Kirloskar Motor also announced slashing prices ranging between Rs 10,500 and Rs 2.17 lakh (ex-showroom Bengaluru). The company said it has reduced prices of all new Fortuner by up to Rs 2.17 lakh, Innova Crysta by up to Rs 98,500 and Corolla Altis by up to Rs 92,500.
It has also lowered the prices of Platinum Etios by Rs 24,500 and that of Etios Liva by up to Rs 10,500.
N. Raja, Director & Sr. Vice President, Sales & Marketing, Toyota Kirloskar Motor said, "GST implementation will be fruitful for the growth of the Indian auto industry. We think the industry will break into double digit territory this year."
German luxury carmaker Mercedes Benz which had passed GST benefit in the form of price cut on May 26th said that there is the significant increase in the number of queries for their cars.
Roland Folger, Managing Director and CEO, Mercedes-Benz India, said, "There may be initial teething issues but we are confident that there will be promising long-term gains. We are encouraged with the rising inquiries and increased footfall at our dealerships and are confident of continuing with our positive growth momentum."
Tata Owned British luxury carmaker Jaguar Land Rover (JLR) which had already lowered JLR prices due to currency fluctuation post-Brexit is expecting double-digit growth this year.
Rohit Suri, MD of Jaguar Land Rover brands in India, said, "On an average, on the basis of ex-showroom Delhi prices, the reduction in the prices of our vehicles across the range will be around 7 per cent,"
He added that as prices become more attractive and more people seek to own brands like JLR, the market will surely expand.
