The automaker will fund the interest cost on dealers’ working capital for holding these models, if the cars remain unsold beyond 30 days. Dealers will also earn incentives if they meet the sales targets set by the company.
The initiative of the car market leader reflects the pressure facing the entrylevel segment amid growing preference among buyers for swankier and featurerich SUVs. Shashank Srivastava, senior executive officer, marketing and sales, at Maruti Suzuki confirmed the company is supporting dealers on slowmoving models.
The blended (all models) stock at dealerships currently will last for 30 days, which is below average, but the inventory of the slowmoving models is 40-45 days due to a mismatch in supply and demand, he told ET.
Easing Working Capital Burden
