Maruti offers cars on low interest rates to vendors

Maruti Udyog Ltd (MUL) is offering cars on lower interest rates to its component suppliers and their employees to fuel demand in the backdrop of slowing sales hit by high interest rates. As per the Maruti’s new plan, the company will finance car purchase by employees of its vendors for low interest rate of his 230 vendors will able to finance the car purchase on the interest rates of 8 per cent.

Current interest rates on normal car loans range from 12.5 per cent to 13 per cent. According to the plan offered to vendors, the monthly equated instalment (EMI) would be paid to Maruti by its vendors, who will then adjust the outstanding amount against the employee’s salary.

The small car segment has been growing at 11 per cent to 12 per cent by every quarter compared with the premium car segment, which has been growing at more than double those levels at 25 percent to 30 per cent.