Mumbai: India’s top car maker, Maruti Udyog Ltd has raised discounts on many of its models as demand slows amid higher interest rates.
Maruti has raised discounts to up to Rs4,360 and extended the offer to many of its models, including its best-selling Alto and the Esteem sedan, to shore up sales.
Maruti, which has nearly half of India’s market for mostly small cars, has said it would be hard to match its record domestic sales of 2006/07 because of slowing demand.
The “Smile India Smile” offer introduced between 1-15August has been extended until the end of the month. The company has also included a bonus for exchanging old Maruti cars.
Under the extended offer, discounts and bonuses range from Rs12,000 to 45,000, up from Rs7,000-30,000.
Other vehicle makers, such as Tata Motors Ltd have scaled back production as demand has eased. Maruti sold 227,578 units in April-July, up 19% from the same period a year earlier.