Maruti Suzuki believes amidst price hikes sales will flourish in 2015 - Report

09/01/2015 - 17:31 | ,  ,   | Paranjay Dutt

Effects of price hike likely to be offset by lower interest rates and decreasing fuel prices.

The recent price hike, thanks to reversal of excise duty benefits and rising input cost, might have made industry watchers bit skeptical about automotive sales this year. But Maruti Suzuki's top man R C Bhargava believes sales won't be harmed, as revealed in a report by PTI.

Mr RS Kalsi, Executive Director, Marketing and Sales, Maruti Suzuki with Mr Kenichi Ayukawa, MD and CEO, Maruti Suzuki at the Alto K10 launch
New products like the Alto K10, Ciaz, and Celerio helped set the momentum of sales last year.

MSIL's chairman Bhargava, mentioned that although the purchase prices have gone up, with the expected drop in interest rates and lower petrol price, car sales won't be affected. He continued, that with about 70 per cent of customers choosing to get the vehicle financed, the increase in price won't be too apparent in the EMIs.

Regarding MSIL's plans this year, he talked about entering new market areas like the SUV segment (with the SX4 S-Cross) and LCV segment (with the Y9T LCV).

Although sales in the last month of 2014 brought a relief to the industry, the market saw car makers like Maruti increasing prices by up to Rs 31,600, Honda by up to Rs 60,000, and Hyundai by up to Rs 1.27 lakh (depending on the model) which could apply the brakes on sales growth.

Suzuki SX4 S-Cross front three quarters at the 2014 Paris Motor Show
Maruti Suzuki will be entering new market segments in 2015 with the SX4 S-Cross (pictured above) and Y9T LCV.

Also read: Maruti Suzuki SX4 S-Cross spotted again

Maruti Suzuki recorded sales of 98,109 units in December last year, managing a 13 per cent increase as compared to December 2013. The closest rival, Hyundai, managed 32,504 units during the same month.

[Source - Economic Times]

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