Maruti Suzuki on Friday announced a reduction of Rs 1 lakh in the price of its compact-segment model Maruti Suzuki Baleno RS. The move by the country's largest carmaker comes two days after it lowered the prices of select models by Rs 5,000 following a cut in corporate taxes announced by Finance Minister Nirmala Sitharaman last week. The ex-showroom price of Maruti Suzuki's Baleno RS model in Delhi is Rs 5,58,602, according to the carmaker's Nexa website. The Maruti Baleno RS model is part of the company's Nexa series of premium and luxury cars.
The company on Wednesday cut the prices of 10 different models by Rs 5,000 each, in a bid to push sales just ahead of the festive season. Maruti Suzuki said it hoped the move would help entice entry-level customers.
At 1:29 pm, Maruti Suzuki shares traded 0.88 per cent lower at Rs 6,800 apiece on the Bombay Stock Exchange (BSE), underperforming the benchmark Sensex index which was down 0.05 per cent.
In a surprise move, the Finance Minister announced a cut in the corporate tax rate to 22 per cent from 30 per cent last Friday. The cuts were the latest in a line of government measures aimed at reviving growth in Asia's third-largest economy, which slumped to a six-year low in the April-June quarter.
Analysts say the move is likely to benefit large corporates at a time when the economy is struggling against a slowdown in growth and weak consumption.
Passenger vehicle sales plunged 31.57 per cent year-on-year in August - marking the 10th straight month of decline and also the steepest fall in the segment ever, according to data from industry body SIAM.