As part of an attempt to increase car sales, Maruti Suzuki India Limited (MSIL) will get regional banks to help make its cars accessible to people in rural and semi-urban areas. Another tactic the company is employing to drive sales is reducing the waiting period for the Swift and the Dzire through a realignment of its production capacities.
Maruti has been seriously hit by the economic slowdown, registering a growth of only 2.5 per cent in October 2008, as against the projected 10 per cent. The A-Star, launched this week, is expected to push up sales to a great extent. Apart from the general decline in the auto industry, increasing competition in the small car segment has also negatively affected older players like Maruti.
The company has said no to an immediate price cut, stating the usual increased-input-cost reason, which applies particularly to steel. On being asked whether a reduction in the price of steel would lead to reduced car prices, Maruti’s representatives said that taking a decision on price cuts would only be possible in the coming year.