India's top car maker, Maruti Udyog Ltd., has cut prices by 3,000 rupees to 5,000 rupees after Haryana reduced a concessional central state tax by 1 percent, a newspaper said on Monday.
The tax is levied on inter-state sale of goods. Maruti's factories are located in Haryana.
"This small gain will dilute the impact of hardened interest rates that have impacted demand," Jagdish Khattar, managing director of Maruti, told the Business Standard paper.
Demand would stabilise in three or four months, when consumers get over the "initial shock" of higher interest rates, Khattar told the paper.
A company spokesman confirmed the report, and said the reduced prices across models became effective April 1.
Banks' lending rates have risen by 300 to 350 basis points from a year earlier as the central bank has stepped up its pace of policy tightening. More than 80 percent of passenger vehicles in India are bought with loans.
Maruti, majority-owned by Japan's Suzuki Motor Corp., last raised prices across models by up to $23 in March after the government imposed an additional 1 percent tax.
The tax is levied on inter-state sale of goods. Maruti's factories are located in Haryana.
"This small gain will dilute the impact of hardened interest rates that have impacted demand," Jagdish Khattar, managing director of Maruti, told the Business Standard paper.
Demand would stabilise in three or four months, when consumers get over the "initial shock" of higher interest rates, Khattar told the paper.
A company spokesman confirmed the report, and said the reduced prices across models became effective April 1.
Banks' lending rates have risen by 300 to 350 basis points from a year earlier as the central bank has stepped up its pace of policy tightening. More than 80 percent of passenger vehicles in India are bought with loans.
Maruti, majority-owned by Japan's Suzuki Motor Corp., last raised prices across models by up to $23 in March after the government imposed an additional 1 percent tax.
No comments:
Post a Comment