New Delhi: Welcoming the government`s initiative to revive demand in the automobile industry, Maruti Suzuki India on Wednesday announced to proactively and voluntarily share the benefits of corporate tax reduction with its customers. The country`s largest carmaker has decided to reduce the price of select models by Rs 5,000 on ex-showroom price.
These popular models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross. The new prices will be applicable immediately across the country. "This reduction of price will be over and above the current promotional offers for the company`s vehicle range," the company said in a statement.
"The company is optimistic that the price reduction will bring down the cost of acquisition, especially for entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand," it added. The automobile industry in India is undergoing a crippling slump with nearly all manufacturers reporting a slowdown in sales and job losses due to subdued consumer sentiment amid an economic slowdown.
According to the Society of Indian Automobile Manufacturers (SIAM), domestic car sales, last month were down 41 per cent to 115,957 units compared to 196,847 units in August 2018. The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.
Finance Minister Nirmala Sitharaman had slashed the effective corporate tax rates to 25.17 per cent (inclusive of all cess and surcharges) from 30 per cent for all domestic companies. This was done to promote investment and growth in the economy, costing the exchequer Rs 1.45 lakh crore at a time when the GDP growth slumped lower to 5 per cent in the April to June quarter as against 8 per cent in the year-ago period.