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      Maruti Suzuki India Limited raises the margins for its dealers by 8 to 10 per cent on petrol cars

      CarTrade Editorial Team

      CarTrade Editorial Team

      Maruti Suzuki, the leading automobile manufacturer in India, has decided to increase the dealer margins on petrol vehicles in order to boost sales. The company has raised the commission by 8 to10 per cent following a dip in its market share below 40 per cent for the first time ever in recent years.

      The company will pay around Rs. 1,000 extra to the dealers to sell small cars like Estilo, Alto and WagonR. For models like SX4 and Ritz, the commission will be around Rs. 1,500 more; whereas for A-Star it will be around Rs. 2,000 more. The increase in dealer commission has taken place after the hike in the retail prices of the Maruti Suzuki range.

       

      Maruti Suzuki
       

      Maruti Suzuki for the first time in over a decade has increased the commission of its dealers. The demand for petrol cars has dropped drastically as the government has repeatedly revised the fuel prices in recent time. The rise in petrol prices has played a significant role in the increased demand for diesel cars due to which most automobile manufacturers in India, including Maruti Suzuki are struggling. 

      With the revised commission, Maruti Suzuki has come at par with its competitors like Volkswagen and Hyundai Motor that give about 7 per cent dealer commission. According to the spokesperson of the company, "Dealer margin is as per the agreement between the manufacturer and the dealer. In line with the business needs and market conditions, it is revised from time to time.” As per an anonymous Maruti Suzuki dealer, any dealer who manages to sell around a 100 petrol cars in a month will now make Rs. 80,000 more commission.

      Maruti Suzuki, in the first three quarters of the current financial year, registered a drop of 39 per cent in the company’s profit to Rs. 995 crores in comparison to the same period last fiscal. Furthermore, after a gap of 11 years, the overseas production of Suzuki, the parent company, also slumped due to lower sales of Maruti Suzuki.

      Since, Maruti Suzuki is the only auto maker in India that does not give permission to its franchisees to sell other car brands; it has been under a lot of strain to increase the commission.

      Maruti Suzuki