Honda considers the current offers and discounts to be ‘sufficient’ altogether.
Following the government’s decision on leniency in the corporate tax rate, a lot of noise has conjured up in the domestic industry. While Maruti Suzuki is still considering whether they should go with the price revision or not, it is a straight no from Hyundai, Toyota and Honda. They believe that the ongoing consumer offers are sufficient and the scope of cheaper prices are from less to none.
Maruti Suzuki is going to announce the changes in the coming days if it is to happen. The affordability of vehicles is increasingly becoming an issue for the automotive industry and hence they might just lower the prices of their vehicles.
Hyundai, on the other hand, believes it to be a ‘long-shot’ at this stage. It is unlikely that we will see any changes in the prices. However, Hyundai’s finance department is contemplating the issue, including the consequences of this decision.
Toyota is also on the same path. They are rather going to use the enhanced cash flows (due to lower rates) for other incremental activities. Much of the cash flow will be devoted to their research and development, product development, and incremental CSR activities. Similarly, they plan to reward their shareholders as well to infuse more money into the company.
Honda considers the current offers and discounts to be ‘sufficient’ altogether. They do not plan to cut their retail prices in the nearer future. They believe that they have the best schemes and incentives, hence, will not lower the prices.
The final decision of each automaker will be eventually disclosed in the upcoming days. Till then, it’s best to just speculate on the factors that the automakers have provided us with.
Car Price Cut
– Maruti Suzuki may lower the prices
– Hyundai and Honda are unlikely to do the same
– Toyota to focus on developmental activities
Source – TimesOfIndia.com