After the government's announcement of about 8 per cent reduction in the corporate tax, India's biggest auto manufacturer Maruti Suzuki on Wednesday announced prices cut for "select models" by Rs 5,000 (on ex-showroom price). The Maruti Suzuki cars that will see a reduction in prices include Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross. The announcement will boost Maruti car sales during the upcoming festival season.
Welcoming the Centre's initiative to revive the demand in the automobile industry, Maruti Suzuki India Limited, in a statement to the stock exchanges, said it had decided to "share the benefits of corporate tax reduction with its customers". The new prices will be applicable from September 25 across the country, the company said.
"The reduction of price will be over and above the current promotional offers for the company's vehicle range. The company is optimistic that the price reduction will bring down the cost of acquisition, especially for the entry-level customers," the company said.
After much pressure to take measures to revive the sagging economy, Finance Minister Nirmala Sitharaman on September 20 announced a cut in corporate tax rate for domestic firms and new domestic manufacturing companies to 22 per cent from 30 per cent. For new manufacturing companies, the existing tax has been reduced to 15 per cent from 25 per cent.
More than two lakh jobs have been cut across automobile dealerships in India in the last four months due to the ongoing slowdown in the auto sector. Among all categories, passenger vehicles (PV) segment has been the worst hit with sales, continuing to decline for almost a year. However, the recent announcement by the Centre could help reinvigorate the sector suffering from low demand and poor sales.
Edited by Manoj Sharma
Also Read: Auto crisis: No festive cheer in industry this season amid concerns over slowdown, BS-VI norms