No price cut, discounts in near term: Maruti Suzuki drops hints
Although, customers can expect Maruti Suzuki to roll out discounts in December quarter of financial year 2023-24 as part of year end clearance sale.
India’s largest automobile manufacturer, Maruti Suzuki India Limited has ruled out any heavy discounts and price cuts on passenger vehicles in the near term.
During conference call at the backdrop of quarterly results of June 2023 quarter, MSIL has indicated that it might not take any price cut on PVs in the near term. This is because, although, commodity prices had consolidated in Q1 FY24, but steel prices increased sequentially. So, this has kept PVs’ cost of production at elevated levels.
Maruti had earlier hiked PV prices by up to Rs 15,000 in April, 2023.
The Japan-based automobile manufacturer has also sighted ongoing semiconductor shortage issue behind the decision. MSIL said electronic components shortage problem persists in Q1 FY24 in its high demand models. Maruti or any other automobile company for that matter is facing huge backlog of pending orders. This is the reason chances of automobile companies rolling out discounts and price cuts on PVs look dim at the moment.
But, Maruti Suzuki has vowed, going forward, if semiconductor shortage issue eases, then, discounts will definitely be rolled out to customers.
But, customers can expect the company to roll out higher discounts on their favourite passenger vehicles in the December 2023 quarter as part of year end clearance sale.
But, it’s not that customers are devoid of any discounts in the recent past. The Japanese based automobile manufacturer had given up to Rs 71,000 discounts on vehicles till July 31, 2023. On remaining part of current quarter, it is unlikely that customers will get any heavy discounts on vehicles.
On an average, Maruti Suzuki gave Rs 3,466 more discount on every vehicle in quarter ending June 30, 2023 vis-à-vis average discount given on passenger vehicles for full previous fiscal year. In FY23, MSI had given average discount of Rs 12,748 on every PV. But in Q1 FY24, Maruti Suzuki jacked up average discount on every vehicle to Rs 16,214.
In Q4 FY23, per vehicle average discount was Rs 13,269. So, on an average, customers have got more discount this year than previous year.
Going forward if supply side constraints ease, customers can expect various discount offers and other benefits on PVs towards the end of year.