Maruti Suzuki, the India’s largest auto manufacturer may see a low sale this year because of high interest rate.
Maruti Suzuki had carried out a number of focused marketing schemes to boost its sales in the lethargic market last year. One among them was the vendor incentive programme. The auto manufacturer had also offered financing of 8.25 % to its vendor last year.
According to a spokesperson, “The principle behind the scheme is to build a strong relationship with the vendors. More than looking at belligerent sales numbers, we view this scheme as a tool that will help our vendors in human relations development practices."
Apart from showroom discounts that ranged from Rs 12,000 on Maruti 800, Rs 11,000 on Alto and Rs 18,000 on Wagon R and Estillo, it offered an exceptional discount of about 4,000 to its employees. But it has stopped financing the scheme this year.
However, now the car manufacturer has taken good a steps by entering in a agreement with the Axis Bank that will tender financing at 10.75 % with repayment periods of 3 to 5 years where the current market rates are at 14 -15 % in order to push up the sales.
With the introduction of these schemes, hope the company will be able to beat the current crisis.