After passing on benefits to buyers on select car models following the government's corporate tax reduction by reducing Rs 5,000 on ex-showroom price, Maruti Suzuki has now slashed the ex-showroom price of Baleno RS by Rs 100,000.
Following this massive reduction in Baleno RS cost, its ex-showroom price now stands at Rs 7.88 lakh.
Earlier, after government's initiative to revive demand in the automobile industry, Maruti Suzuki India on Wednesday announced to proactively and voluntarily share the benefits of corporate tax reduction with its customers.
The country's largest carmaker reduced the price of select models by Rs 5,000 on ex-showroom price.
These popular models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross.
The new prices will be applicable immediately across the country. "This reduction of price will be over and above the current promotional offers for the company's vehicle range," the company said in a statement.
"The company is optimistic that the price reduction will bring down the cost of acquisition, especially for entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand," it added.
The automobile industry in India is undergoing a crippling slump with nearly all manufacturers reporting a slowdown in sales and job losses due to subdued consumer sentiment amid an economic slowdown.
According to the Society of Indian Automobile Manufacturers (SIAM), domestic car sales, last month were down 41 percent to 115,957 units compared to 196,847 units in August last year.
The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.
Last week, Finance Minister Nirmala Sitharaman slashed the effective corporate tax rates to 25.17 percent (inclusive of all cess and surcharges) from 30 percent for all domestic companies.
This was done to promote investment and growth in the economy, costing the exchequer Rs 1.45 lakh crore at a time when the GDP growth slumped lower to 5 percent in the April to June quarter as against 8 percent in the year-ago period.
(With inputs from ANI)
