Automobile Manufacturers Increasing the Margin of the Dealers to Boost the Sale of Petrol Vehicles

With the decrease in the sales of the petrol fuel based cars due to escalation in the fuel price has put most of the automobile manufacturers in a very tight spot. Although the automobile manufacturers are bringing in the diesel versions of their existing models as well as new cars, but that is a time taking procedure which involves more investment as well as efforts. The Hyundai Motors and Maruti Suzuki India has come up with an absolutely fresh strategy to boost the sales of their petrol based vehicles. These two automobile manufacturers are about to raise the commission of the dealers and also increase the discount on their cars for the customers. Previously the automobile dealers were offering their prospective customers the discount by chipping in on their own profit margin. But this idea to increase sales by the dealers did not work out that well as the inventories on various things were rising up on a regular basis. This prompted these two automobile manufacturing firms to come to a decision where they increased the commission of the dealers to promote the sales of their petrol cars.

Automobile Manufacturers Increasing the Margin of the Dealers to Boost the Sale of Petrol Vehicles
The dealers of Maruti Suzuki used to receive a commission of 4 percent previously, but the whole scenario has changed as the firm’s overall sales of vehicles have come down. Now the firm has raised the commission of the dealers to more than double what it used to give them previously for the sales of petrol fuel based cars. This decision has to be taken quickly by Maruti because the sales of its cars have come down to 40 percent than before, all because of the slowdown in the car’s sales. The car maker Hyundai India has also raised the commission for its dealers to 8 percent for all its petrol fuel based car models.

Because of the rise in the sales of the diesel fuel based automobiles that has covered almost 80 percent of the overall sales in the automobile industry. The other car making firms had to pick-up the same methodology as that of Maruti Suzuki India and Hyundai Motors to get their petrol fuel based cars back onto the selling track from the dealerships. Tata Motors and General Motors have also raised their dealer’s commission by 2 per cent.  This move of the auto manufacturers with the RBI’s announcement to cut down on the interest rates will definitely help the sale of petrol fuel based cars that has gone downhill for past two years.

Automobile Manufacturers Increasing the Margin of the Dealers to Boost the Sale of Petrol Vehicles
The difference between the price of the petrol fuel based cars and diesel fuel based cars have come to as much as 15 to 25 percent these days. With the firms increasing the dealer’s commission and discount ratio along with the interest rate cut, it will put together a good savings for the customers when they opt to purchase a petrol car.

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