Maruti 800, the flagship mass-based car of Maruti Udyog Ltd, went ex-stock nationally last week.
From August 15, there will be a free sale of the popular Zen, which will be made available on a first-come-first serve basis.
This is the first time Maruti 800 has gone ex-stock since it hit the roads in 1983. Three years ago, a rise in excise duty from 40 to 60 per cent had seen Maruti go ex-stock for a couple of days.
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With this, except for the Omni, all vehicles from the Maruti stable can be picked off the shelves.
This clearly shows demand for vehicles havent gone up, but overall supply has increased. In the first quarter of 1997-98, car sales grew by a mere six per cent as against the corresponding period last year. Maruti, with 74,850 vehicles grew by three per cent.
The changing situation will no doubt put pressure on Maruti dealers who have been releasing aggressive advertisements in mainline dailies. According to a leading Mumbai-based dealer, selling the Maruti would now involve a panoply of schemes and promotions to lure buyers.
We will personally sell more cars, but selling will be tougher, the dealer said.
He claims competition will force Maruti to hike dealer margins on the 800 model. For instance, today, a Maruti 800 dealer gets Rs 4,000 as margin on the showroom price of the vehicle. With dwindling demand, it is expected to go up to Rs 7,000.
Dealers say Maruti 800 will continue to top the popularity charts. While first-time users are going for Maruti 800, there are existing users who are upgrading to the Maruti Zen.