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Its not rocket science that petrol cars are not selling as much as their diesel counterparts. Car manufacturers are finding it difficult to shift petrol cars as buyers look for more frugal offerings. Those cars having both petrol and diesel offerings are seeing almost 80% bias towards diesel variants. The problem is not only of selling, but diesel car production is always less than the supply due to which diesel vehicles are commanding a high waiting period. Many dealers are finding it difficult to push petrol variants, as buyers don’t mind waiting and paying the extra cost for the diesel-powered machines.
Now Maruti Suzuki has increased margins to the dealers by up to 10% to push petrol vehicles. This will lead to dealers getting more aggressive with you, the buyer to make you opt for a petrol car instead of a diesel. This is the first time in decade that Maruti Suzuki has increased dealer commissions. It is to be noted that Maruti Suzuki is facing a diesel capacity crunch and has resorted to FIAT to supply them Multijet diesel engines. The market share of Maruti has dropped to 40%, which has led to the company resorting increase in commissions. Also the increase in retail rent has caused decrease in profitability for some dealers.
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