- Recently, the Finance Ministry slashed the corporate tax to 22.5 percent.
- Auto Industry has been going through worst of times.
- Maruti hopes to revive sales growth by price revision across the range.
Maruti Suzuki Planning To Slash Car Prices After Corporate Tax Cut
Snapshot: Maruti Suzuki is planning to slash the prices of all its models in the country after the government recently announced a cut in Corporate Tax for companies.
Maruti Suzuki is planning a revision in the price of all its cars on sale in the Indian market. This move is a direct result of the slashing of corporate tax by the Ministry of Finance, Government of India. Recently, the company's Chairman, RC Bhargava said that Maruti is looking for a solution and an announcement regarding the same can be expected in a day or two.
Bhargava was of the view that a decision will be taken 'quickly' and the company can't afford to wait for long. The higher car prices have also been one of the primary reasons for major slump in sales for the past 6-7 months. Hence, the country's largest automaker is planning to lower the prices of cars in its portfolio ahead of the festive season to witness a boost in sales. Though, several other brands such as Hyundai, Honda, and Toyota are deploying the strategy of huge benefits and discounts on their products to attract buyers before the festive season kicks in. These companies are have rolled out offers for almost every vehicle in their portfolio, right from entry-level cars to huge flagship SUVs and sedans.
Shekar Viswanathan, Vice-President, Toyota India said that he believes there might not be any immediate effect. He told that the low corporate taxes are indeed helpful for the companies in improving the cash flow but it puts a very low effect on the product pricing. The better cash flow results in several factors such as accentuating R&D facilities, enhancing CSR activities, reward stakeholders to motivate them for further investments, roll out of new products, etc. to name a few.
Related car news
- 25-09-2019 Autoportal Team Maruti Suzuki Cuts Prices of Select Models By Rs 5,000
- 09-12-2020 Ashish P Abraham Maruti Suzuki launches the all-new powerful and stylish Vita...
- 09-12-2020 Davender Soni Exclusive: 2018 Maruti Suzuki Ciaz facelift revealed in Clea...
- 08-02-2020 Autoportal Team Suzuki Jimny offroader unveiled at the Expo to gauge the Ind...
- 06-02-2020 Ankit Gupta 2020 Maruti Vitara Brezza Debuts at Auto Expo; Details Insid...
- 05-02-2020 Ankit Gupta Target for Maruti – ‘Sale of a million green cars.’
- Most Popular