The rising inflation has brought a nightmare in the Indian car industry. Car sales are going down and competition is getting tougher in the domestic market.
During this era of high inflation, Maruti Suzuki Motors, the leading car manufacturer in India, is modifying its marketing strategies. The company is eyeing on 15-20-year-old cars to drive new car sales.
The company has tied up with various car dealers across the country. These dealers are asked to dispose the old cars that they get in exchange of new cars. The company provides an exchange discount of about Rs 40,000.
In return, Maruti is also inviting bids for old cars from scrap car dealers. The company feels that the bidding of old cars will benefit their pre-owned car business popularly known as, the True Value.
Maruti has reported an increase in car sale ever since this exchange offer has come out in the market. The sales have gone up from 12% to 20%, resulting in promotion of entry- level car models like Alto.
Maruti has high expectations from this old for new exchanged scheme. Hope the expectations are fulfilled.