Maruti Sales may Slump Due to Soaring Interest Rates
Many auto manufacturers are facing obstacles in the Indian
car industry. One such auto major is Maruti Suzuki. In spite of several hindrances
the car manufacturer has initiated the vendor incentive programme last year
among its 200-odd vendors.
Due to the ever mounting interest rates and saturation in the Indian car market the company might not obtain the same numbers this year.
Owing to the vendors program the staff bought good sales to the company last year where it sold 4000 cars during the three month period ended July 31, 2007. Maruti Suzuki has carried out numerous focused marketing schemes in the recent past to push it sales in the sluggish market.
Maruti has also offered financing to vendor employees at 8.25 % last year to help them purchase its cars. The principle behind the scheme was to build a strong relationship with the vendors.
The company has also offered numerous discounts that ranged from Rs 12,000 on Maruti 800, Rs 11,000 on Alto and Rs 18,000 on Wagon R and Estillo to promote sales. An exceptional discount of about 4,000 was also offered to its employees.
The auto manufacturer has taken good steps to perk up it sales. It is tied up with Axis Bank that tenders financing at 10.75 % with repayment periods of 3 to 5 years where the current market rates are at 14 -15 %.
Due to the ever mounting interest rates and saturation in the Indian car market the company might not obtain the same numbers this year.
Owing to the vendors program the staff bought good sales to the company last year where it sold 4000 cars during the three month period ended July 31, 2007. Maruti Suzuki has carried out numerous focused marketing schemes in the recent past to push it sales in the sluggish market.
Maruti has also offered financing to vendor employees at 8.25 % last year to help them purchase its cars. The principle behind the scheme was to build a strong relationship with the vendors.
The company has also offered numerous discounts that ranged from Rs 12,000 on Maruti 800, Rs 11,000 on Alto and Rs 18,000 on Wagon R and Estillo to promote sales. An exceptional discount of about 4,000 was also offered to its employees.
The auto manufacturer has taken good steps to perk up it sales. It is tied up with Axis Bank that tenders financing at 10.75 % with repayment periods of 3 to 5 years where the current market rates are at 14 -15 %.
