Reduced prices, festive offers to accelerate auto sales

New Delhi: The steps taken to reverse the economic slowdown, along with the upcoming festive season offers, might have the potential to accelerate the automobile sector’s sales growth, industry insiders opined.
The trend of reduced prices on the back of recent corporate tax sops is expected to catch-up after car market leader Maruti Suzuki cut prices on Wednesday.
There had been scepticism in the auto industry whether a cut in corporate taxes will lead benefit consumers. The government has yet not lowered GST rates for automobiles despite persistent demands by the industry.
Nonetheless, the auto giant announced an immediate Rs 5,000 cut in prices of its bestselling cars including all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross.
Besides, other companies such as Piaggio India and Isuzu Motors India announced festive season discounts.
On its part, Maruti Suzuki decided to reduce the price by Rs 5,000 on ex-showroom price, “proactively and voluntarily” sharing the benefits of cor porate tax reduction with customers.