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    Maruti, Hyundai cars may get cheaper

    Synopsis

    However, Toyota and Honda have said that they are not looking to cut the price of the vehicles.

    Untitled-5PTI
    Earlier, Maruti Suzuki's chairman RC Bhargava said that affordability of vehicles is increasingly becoming a concern for buyers and this is amongst the reasons which have depressed the car and SUV market.
    If you are planning to buy a car, especially a Maruti one, then you should postpone your purchase plans as the company is mulling to reduce its vehicle prices following the reduction in corporate taxes.

    Maruti told Times of India that it may announce something in this regard in 1-2 days. Earlier, Maruti Suzuki's chairman RC Bhargava said that affordability of vehicles is increasingly becoming a concern for buyers and this is amongst the reasons which have depressed the car and SUV market.

    However, the bad news is that many other carmakers in India are not planning to cut car prices despite the severe slowdown in the auto sector.

    “Lower tax rate helps us improve cash flows. But does the actual cost of the product come down? The answer is no. If not, then there is little potential to cut the price of the vehicles," Shekar Viswanathan, vice-chairman at Toyota Kirloskar, was quoted as saying by ToI.

    Hyundai, the second-biggest passenger vehicles maker, reportedly is mulling a cut in the car prices. But Vikas Jain, sales head at Hyundai, told ToI that “passing on the benefit in terms of a price cut may be a long shot” at this point in time.

    Honda Cars has said that its offers and incentives are sufficient and it is not looking to reduce its car prices.

    According to the Society of Indian Automobile Manufacturers (SIAM), domestic vehicle sales in August declined by 23.55 per cent to 18,21,490 units from 23,82,436 units in the same month last year.

    From April to August period, the sales have fallen by 15.89 per cent to 97,32,040 units from 1,15,70,401 units in the year-ago period, SIAM had said.


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