In the second round of price cut, automaker Maruti Suzuki today announced a massive decrease in prices of its popular Baleno RS model. According to a new price notification, the car will is now cheaper by 1 lakh.
“This is to inform that Maruti Suzuki India Limited announced a price reduction of select models by 5,000.00 on September 25, 2019. Along with the above reduction, the company has also reduced the Ex-Showroom price of its model i.e. Baleno RS by 100,000.00,” the carmaker said in a BSE filing.
Earlier on Wednesday, India’s largest vehicle manufacturer had reduced the prices of entry-level cars and diesel variants of all products by ₹5,000. The list includes some of its bestselling cars like Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross.
Timed ahead of Navratri and Diwali festive season, the price cut will boost customer sentiment and revive the auto market hit by slumping demand.
Finance Minister Nirmala Sitharaman had recently reduced the effective corporate tax rates to 22% from 30% for all domestic companies. Maruti is seen as passing on the benefits to consumers.
Besides the price cut, Maruti is also having various promotional offers varying from Rs 40,000.00 to Rs 1 lakh on different models. It had earlier said that it is optimistic that the price reduction will bring down the cost of acquisition, especially for entry-level customers. “This announcement around the festival season will help boost customer sentiment and revive the market to create demand,” Maruti had earlier said in a press release.
Last month, Sitharaman had announced several measures to rescue the auto sector, including lifting a ban on the purchase of vehicles by government departments and allowing additional 15% depreciation on vehicles bought till March 2020 among others.
The auto industry has been demanding GST rate cuts as domestic car sales were down 41% to 115,957 units last month.