With the Reserve Bank of India (RBI) hiking lending rates 13 times since mid-2010, the automobile industry has come under pressure with most entry-level buyers postponing fresh purchases.
Data available with industry body Society of Indian Automobile Manufacturers (SIAM) shows that till October sales in the mini segment have declined by over 11 per cent to 333,631 units. For MSIL, the drop has been sharper at around 16 per cent.
Between April and October this fiscal, the company could sell only 259,909 cars in the mini segment which account for around half of the overall volumes for Maruti Suzuki.
Post the labour disruptions, which saw sales dip by as much as 52 per cent to 51458 units for the company in October this year, Maruti is now trying to up marketing efforts to reach last year's sales volumes.
"That in itself is a challenge," says R C Bhargava, chairman, MSIL. But, for now, the country's largest car maker is leaving no stone unturned to bring in those extra numbers.
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