New Delhi: At a time when the automobile sector in the country is going through a rough business phase, Maruti Suzuki India (MSI), India’s largest carmaker, is trying its best to revive the demand in the industry. The MSI on Friday said it has reduced the price of its performance hatchback Baleno RS by Rs 1 lakh. After the reduction, the model now starts at a price of Rs 7,88,913 (ex-showroom Delhi). Also Read - Maruti Suzuki Offers Discounts Upto Rs 1.05 Lakh on Cars - Vitara Brezza, Swift, Dzire, Eeco | Full Details

A ‘high-performance’ hatchback powered by a 1.0 litre boosterjet petrol engine, Baleno RS delivers 20 per cent more power than a naturally aspirated 1.2 litre petrol engine. Also Read - Maruti Suzuki to Shut Down Its Production For Two Days in Gurugram, Manesar Plant Amid Demand Crunch

Earlier this week, the MSI had reduced prices of select models by Rs 5,000 (on ex-showroom prices). These included all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross, MSI said in a statement. After the reduction, the prices of these models are in the range of Rs 2.93 lakh and Rs 11.49 lakh. Also Read - Maruti Suzuki Sheds 1,000 Temporary Staff, May Freeze Hiring

After the announcement was made about the price reduction, the company said the new prices will be applicable immediately across the country. “This reduction of price will be over and above the current promotional offers for the company’s vehicle range,” the company said in a statement.

“The company is optimistic that the price reduction will bring down the cost of acquisition, especially for entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand,” it added.

The automobile industry in India has been worst affected after the economy of the country has gone down. All manufacturers across the country are reporting a slowdown in sales and job losses due to subdued consumer sentiment amid an economic slowdown.

The slowdown in the automobile sector also comes from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.

To bring the economy up and to make the country’s business flourish, Finance Minister Nirmala Sitharaman had last week slashed the corporate tax rates to 25.17 per cent (inclusive of all cess and surcharges) from 30 per cent for all domestic companies. The government has taken this initiative to promote investment and growth in the economy.

(With inputs from ANI, PTI)