Competition from Renault Logan, Tata IndigoMaruti Udyog has substantially increased discounts on models such as the 800, Alto, Zen Estilo and the Esteem.
The move comes even as the company has apologised to customers for the long delay in deliveries of the Swift and the newly launched SX4.
The company has advertised in leading dailies last week about the discount offer open till June 15 on the four models named above.
While it has increased discounts on Esteem to Rs 35,000 from Rs 25,000 last month, that on the Zen Estilo has been hiked from Rs 10,000 to Rs 15,000 this month.
The discount on the popular Alto, with sales of nearly 20,000 units per month, has been doubled to Rs 10,000.
Senior Maruti officials could not be reached for comment.Market sources said that there has been a demand for new models like the Zen Estilo, Wagon-R and Swift Diesel, even as demand for older models such as the Esteem and the 800 is waning.
Customer preference for the Alto over the 800 in the entry-level segment and new competition from the Renault Logan and Tata Indigo in the sedan segment could also be possible reasons behind Maruti increasing discounts on its own models.
The company is also possibly offering discounts to try and ease pressure on its models from recent launches such as the Chevrolet Spark and the Hyundai Getz Prime, the sources added.
"The doubling of discount on the Zen Estilo this month, as compared to April and May, could be related to the launch of Spark," said a dealer.
Two months ago, the Managing Director, Mr Jagdish Khattar, had said that Maruti would be changing over to the latest M-series engine for all models, but did not mention a timeframe.
The Suzuki SX4 has been launched with the M-series engine, which is supposed to be more refined and helps Maruti vehicles meet Euro IV emission norms, which will come into force in 2008.
Over the last couple of days, the company has issued advertisements in the form of a letter from Mr Khattar, apologising for the delay in deliveries of the Swift and the SX4.
"It is possible that the delay has been worsened by a mix of unanticipated demand and a possible changeover to the new engine," said an analyst.
Meanwhile, the company is understood to be gearing up for the launch of the Suzuki Grand Vitara next month.
The move comes even as the company has apologised to customers for the long delay in deliveries of the Swift and the newly launched SX4.
The company has advertised in leading dailies last week about the discount offer open till June 15 on the four models named above.
While it has increased discounts on Esteem to Rs 35,000 from Rs 25,000 last month, that on the Zen Estilo has been hiked from Rs 10,000 to Rs 15,000 this month.
The discount on the popular Alto, with sales of nearly 20,000 units per month, has been doubled to Rs 10,000.
Senior Maruti officials could not be reached for comment.Market sources said that there has been a demand for new models like the Zen Estilo, Wagon-R and Swift Diesel, even as demand for older models such as the Esteem and the 800 is waning.
Customer preference for the Alto over the 800 in the entry-level segment and new competition from the Renault Logan and Tata Indigo in the sedan segment could also be possible reasons behind Maruti increasing discounts on its own models.
The company is also possibly offering discounts to try and ease pressure on its models from recent launches such as the Chevrolet Spark and the Hyundai Getz Prime, the sources added.
"The doubling of discount on the Zen Estilo this month, as compared to April and May, could be related to the launch of Spark," said a dealer.
Two months ago, the Managing Director, Mr Jagdish Khattar, had said that Maruti would be changing over to the latest M-series engine for all models, but did not mention a timeframe.
The Suzuki SX4 has been launched with the M-series engine, which is supposed to be more refined and helps Maruti vehicles meet Euro IV emission norms, which will come into force in 2008.
Over the last couple of days, the company has issued advertisements in the form of a letter from Mr Khattar, apologising for the delay in deliveries of the Swift and the SX4.
"It is possible that the delay has been worsened by a mix of unanticipated demand and a possible changeover to the new engine," said an analyst.
Meanwhile, the company is understood to be gearing up for the launch of the Suzuki Grand Vitara next month.
Source: The Hindu Business Line
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