Maruti Suzuki blames increase in ownership cost for declining car sales

Company indulging in heavy discounts to get customers back

The country’s largest carmaker Maruti Suzuki has blamed increase in ownership cost as the biggest reason for the slowdown in car sales. Along with that, a tight liquidity situation because of the stringent lending norms of banks and confusion over BS-VI vehicles have made life tougher for automakers.

This view comes in the backdrop of Finance Minister Nirmala Sitharaman’s comment that a change in the ownership pattern of cars from owned vehicles to cab aggregators such as Ola and Uber is the reason why car sales are falling. The auto industry is clamouring for a cut in goods and services