[RaviK]

Originally Posted by PrasannaDhana

.. when Maruti is willing to give me a 1.9 lakh rupees discount on the Scross Delta variant, bringing the OTR from 12.5 lakh to 10.6 lakh and the SA still promising me that he can increase the discounts further.

Originally Posted by vinit.merchant

..A colleague was able to close an Scross deal (OTR 12.80 - including 5 year warranty, 3 year insurance etc) for a good 11.10...

Off-topic, but is it a dealer specific discount or some old stock left/display cars ? I've started doing some digging around CIAZ & Baleno in CHD and so far Maruti dealers are sticking to the official discounts mentioned on the Maruti website. Though to be honest, I haven't pressed hard, but still the discounts you've mentioned are way above what I thought was possible (I thought 4 - 5k was at most you'll be able to get !!)

Seems like a good idea to learn a trick or two from you folks regarding extracting maximum discounts

[Vians]

Maruti has a PAT margin of 9%. Assuming they save 6% (I have stated a higher value just to please us all) due to corporate tax cut, Maruti saves 0.54% which they can pass it to customers. Assume a car sells for 7 lakhs, Rs 3700 can be the discount. A 12 lakh car can get a discount of about 6000. Hence the 5000 discount seems reasonable.

[PrasannaDhana]

Originally Posted by PrasannaDhana

I don't understand this 5000 rupees stunt, when !!)

Seems like a good idea to learn a trick or two from you folks regarding extracting maximum discounts

Not dealer specific or specific to certain cars.

Scross is going at a flat 60 to 80k cash discount at almost all Nexas. Same way with Brezza.

The Delta variant retails at around 11 lakhs ex showroom iirc. They have given a discount bringing the ex showroom cost to 9.99 lakhs and hence the hefty difference in OTR.

Same way , Skoda is giving 2.2 lakhs on Ambition variant, 1.5 lakhs off on Monte carlo and 2 lakhs off on Onyx variants here.

Hexa gets 1.5 lakhs discount (on specific stocks though) , Nexon 70k, Harrier 50k., Brezza 1 lakh. Almost all manufacturers have started clearing their bs4 stocks.

I haven't even negotiated hard. I have decided to wait longer to see if I can get better discounts on the rapid.

[groom]

This is indeed a joke, but there is a better joke available.
Bajaj increased Dominar price by 10,000rs and offered festive season discount of 7000rs. What ? Seriously :-P

[Leoshashi]

Originally Posted by Motormania

What nobody has noticed or highlighted is the fact that the Baleno RS has received a massive Rs. 1 lakh price cut, other than the regular offers currently running in the market!

Please don't count this as disrespect, but kindly mention source of your info.

Regards,
Shashi

[kiku007]

Government - We care for you. Here's a discount on your declining/non-existent profits.
Maruti - We care for you. Here's an Rs.5000 discount on your million rupee purchase
Customers - I care for myself. I'll wait it out.

I sincerely hope that the Government and Industry work together and set things on the right track with solid long term measures.

[greenhorn]

Originally Posted by Vians

Maruti has a PAT margin of 9%. Assuming they save 6% (I have stated a higher value just to please us all) due to corporate tax cut, Maruti saves 0.54% which they can pass it to customers. Assume a car sells for 7 lakhs, Rs 3700 can be the discount. A 12 lakh car can get a discount of about 6000. Hence the 5000 discount seems reasonable.

+1 to this. Let me use my first year MBA skills to explain
Assume a Swift VDi AMT
As per this , On ex showroom price is 7.79L
Ex Factory is 6.09L (let's round up to 6L)

Now I'm going into fictional territory, because I'm going to make the following numbers up. Assume maruti is offering a 10% margin to dealers, that means that Maruti's Selling price is 5.4L

Now assume Maruti earns another 20% on this, so this translates to a COGS of 4.32L

Now if a dealer gives a 60K discount, assume 30K is coming from maruti's dealer incentives, and 30K is coming from the dealer's own margin.

Now in maruti's balance sheet, Revenue = 5.4L
Selling expenses = 30K
COGS = 4.32L

Operating profit = 78K

Tax @30% = 23.4K

(I'm not going into overheads yet, but assume they don't exist )

If Maruti gets a 7% cut in its corporate tax
Tax @22% = 17.2K

Savings to maruti due to tax cut = 6.2K - and they are passing on 5K, which sounds reasonable because I assumed there are no overheads, which would reduce that number once it goes down)

If Maruti is giving 60K on discounts, that may be because of its own pricing/discount strategy, but lets not tie this to the corporate tax cut - these are two different things.

If the discount of 7K on the dominar was actually savings due to the tax cut, then that implies that Bajaj was getting a profit of 7k/0.07 = 1L per bike

[COMMUTER]

It would have been more profitable for MS to have left this 5k 'discount' unpublished. They are trying to cook up an image of their cars having insane demand. They want to be regarded as being courteous in giving this. I think that MS guys are rapidly adopting the destructive mindset MB guys had adopted a few decades earlier.

MS has enjoyed the 'demand' by falsely building up waiting periods which also helped them bypass the festival offers. Their service and maintenance costs are at par or at times higher. Their myth of higher resale is heavily offset by the initially increased input in purchase price. It is time for all the skimmers profitting behind these actions to ease off or risk losing it all. Otherwise, their market share will go poof at the very the instant someone whispers "crash-testing" loud enough.

[Vians]

Originally Posted by COMMUTER

MS has enjoyed the 'demand' by falsely building up waiting periods which also helped them bypass the festival offers.

On what basis do you feel there is a false waiting period? Most cars are available within a week to a month based on your location. If there is a new launch, maruti has to persuade suppliers to ramp up and forecasting ahead is not easy. If Suzuki does manufacture too many and if retail demand is lacking, dealers will be hit very badly. Managing production is not easy and people working on it can tell stories of how hard it is. No OEM in the right mind will create false demand.

[adi.mariner]

A 5k discount is a discount after all, no matter how small it is compared to the value of the car. I would consider that MS is giving a tankful of petrol free with the car instead of the measly 5 liter coupon they usually give.
Finally money saved is money earned.

[nick.cs]

In a second round of price cut, automaker Maruti Suzuki today announced a massive decrease in prices of its popular Baleno RS model. According to a new price notification, the car will is now cheaper by ₹1 lakh.
"This is to inform that Maruti Suzuki India Limited announced a price reduction of select models by ₹5,000/- on September 25, 2019. Along with the above reduction, the company has also reduced the Ex-Showroom price of its model i.e. Baleno RS by ₹100,000/-," the carmaker said in a BSE filing.

https://www.livemint.com/auto-news/m...569871169.html

now that's something substantial to say. but again that's only on one model.

[ridehard]

Originally Posted by PrasannaDhana

Not dealer specific or specific to certain cars.
Scross is going at a flat 60 to 80k cash discount at almost all Nexas. Same way with Brezza.
The Delta variant retails at around 11 lakhs ex showroom iirc. They have given a discount bringing the ex showroom cost to 9.99 lakhs and hence the hefty difference in OTR.

Hey Prasanna, may I know which Chennai Nexa showroom is this? Also, did you mean Delta Variant retails at around 11lakhs OTR and not Ex-showroom?

I recently visited the OMR Nexa, the service rep told me the usual price for Delta variant comes to around 11.6L OTR. And that he can get me discounts upto 1.2L (incl. corporate and exchange bonus), which brings the OTR to about 10.4L. I am sure, there is some more room to bargain, but I just want to be sure that we are talking about the same variant of the car, and not the Zeta variant?

[Precision]

5,000 Rupees does not cover one routine service cost for most of their cars, then why do it all?
Because across India people are talking about "Maruti giving 5k Discount" be it in a positive note or a negative one. End of the day there is no such thing as bad publicity!

I have always wondered why car manufacturers are not competing with a cost of ownership index for their products rather than Ex-Showroom prices, any human being will appreciate a heads up when it comes to financial planning.