Maruti beats monsoon blues

The monsoon spells bad times for dealers and retailers in India. Walk ins are down, purchase decisions are put off. In fact dark skies correspond with empty stores. In such a scenario who better to have as a consumer, than people within one's own stores.

Possible? Yes. That's what Maruti did with compelling success.

It’s Maruti’s new monsoon mantra. To beat the annual rainy season blues in the car mart, the company has rolled out several schemes involving vendors, suppliers, sub-vendors, dealers and employees. The vendor scheme, called Hum Saath Saath Hain, kicked off last month and has so far brought in around 450 units in sales. The employee scheme, also five-week old, has helped Maruti sell 2000 cars.

The vendor scheme started with MUL MD, Mr Jagdish Khattar meeting his top suppliers in groups and explaining the concept to them. Under the scheme, Maruti extends loans at ‘lower than market rates of interest’ to its vendors against a guarantee of repayment. The scheme covers all models except SX4 and Swift and the loans are available up to 90% of the showroom cost for four to seven years. Thanks to the lower interest rates, the EMI under this scheme is Rs 1,584 per lakh compared to the market rate of Rs 1,766. The savings work out to around Rs 20,000-50,000 over four to seven years.


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