Maruti Suzuki has announced reductions in the prices of its cars, with entry-level passenger vehicles getting rate cuts that are over and above the GST benefits of 8.5 per cent.
With effect from September 22, the company will pass on the full benefit of the recent reduction in GST rates on automobiles to customers, the country's largest carmaker said in a regulatory filing.
There can't be a better time to upgrade, said Partho Banerjee, Senior Executive Officer (Marketing & Sales), Maruti Suzuki India, in a virtual press conference on Thursday.
The steep cuts on smaller cars, he said, was to help two-wheeler users upgrade to cars.
“As the car penetration in India is very low at 34 per 1,000 people, it’s all the more compelling for a market leader like Maruti Suzuki to take this initiative to put India on wheels,” he added.
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The move of cutting prices on entry-level cars would especially help the segment stabilise after volume decline in the last few years, Banerjee said.
The prices of entry-level model, S Presso, will go down by up to ₹1,29,600; Alto K10 by up to ₹1,07,600; Celerio by ₹94,100; Wagon-R by up to ₹79,600 and Ignis by up to ₹71,300, the auto major said.
Price of premium hatchback Swift will be reduced by up to ₹84,600; Baleno by up to ₹86,100; Tour S by up ₹67,200; Dzire by up to ₹87,700; Fronx by up to ₹1,12,600; Brezza by up to ₹1,12,700; Grand Vitara by up to ₹1.07 lakh; Jimny by up to ₹51,900; Ertiga by up to ₹46,400 and XL6 by up to up to ₹52,000, it added.
Similarly, prices of Invicto will reduce by up to ₹61,700; Eeco by up to ₹68,000 and Super Carry LCV by up to ₹52,100, the company said.
Banerjee also said that the company will pass on the GST rate cut benefit on car parts used in service and maintenance to reduce the overall total cost of ownership.
“The company will also compensate its channel partners for the "strategic pricing" initiative,” he informed.
The official said he believes that the passenger vehicle market is going to bounce back to the earlier CAGR of 6 to 7 per cent in the next financial year.
Meanwhile, Maruti Suzuki shares closed almost flat at ₹15,802 per share on BSE.
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