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Old 28th January 2012, 18:28   #1
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Default Maruti Dealer Cartel in Bangalore?

Hello everyone

One of my colleagues has booked a Ritz LXi at Bimal Motors. He told me that he had done so and when I asked him if he had visited multiple dealers to get competitive quotes, he replied in the negative. I advised him that if he wanted to get a good deal on his car, the first thing he should do is to get quotes from multiple dealers, compare them and then go for the one that is best.

He just called me to tell me that he had called all the MSIL dealers in Bangalore and that all of them told him that the dealers "association" has decided that no dealer will provide any "under-cutting quotes" and that they were all providing standard quotes, discounts, offers etc. I find this surprising and a little against the spirit of competition. Could someone throw some light on this? Has anyone of you come across this "phenomenon" in Bangalore or outside with MSIL or other car dealers?
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Old 28th January 2012, 19:29   #2
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Default Re: Maruti Dealer Cartel in Bangalore?

I do not think this is happening in Bangalore. Just now one of my apartment mate purchased new Wagon-R and he got good rate at one of the dealer called Kalyani Motors.

I have heard Kalyani Motors is coming near to Cosmos Mall, Whitefield for competing Bimal Motors in Whitefield. He will give competitive rate for the sake of pulling customers from old veteran in Whitefield Bimal Motors.
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Old 28th January 2012, 19:33   #3
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Default Re: Maruti Dealer Cartel in Bangalore?

Quote:
Originally Posted by anujmishra View Post
I do not think this is happening in Bangalore. Just now one of my apartment mate purchased new Wagon-R and he got good rate at one of the dealer called Kalyani Motors.

I have heard Kalyani Motors is coming near to Cosmos Mall, Whitefield for competing Bimal Motors in Whitefield. He will give competitive rate for the sake of pulling customers from old veteran in Whitefield Bimal Motors.
Thanks Anuj. I thought as much and told my colleague that he should cross check once again.
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Old 28th January 2012, 20:15   #4
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Default Re: Maruti Dealer Cartel in Bangalore?

Well, I am not sure about this Cartel, but you should go and check with other dealers also. This could be a game played by a dealer to prevent you from bargaining / asking freebees etc.

The best way is to check with Maruti through a helpline etc. Legally, the dealership association should be a registered authority.
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Old 28th January 2012, 20:30   #5
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Default Re: Maruti Dealer Cartel in Bangalore?

When we did our Baleno Purchase and now civic, we always check with all the dealers. Now there is a possibility that they might gang up to give standard rates but pushing them harder sometimes does get you the desired result. If a dealer refuses to play ball, please be prepared to walk away from the deal.

The other thing we did tried was to make initial inquiry calls in both names Mine and my wifes so as its difficult to connect the dots as the mobile numbers are different and names are different. So one dealer cannot accuse the other of poaching.
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Old 30th January 2012, 08:05   #6
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Default Re: Maruti Dealer Cartel in Bangalore?

Thanks Bharath and Mayank. My colleague did tell me that he had spoken to multiple dealers and that all of them were stuck to the standard quote for that particular model.
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Old 30th January 2012, 09:32   #7
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Default Re: Maruti Dealer Cartel in Bangalore?

Such Cartelization is probably an Unfair Trade Practice. In any case such cartels have a very short life, till someone breaks the 'so called' rules.
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Old 30th January 2012, 11:10   #8
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Default Re: Maruti Dealer Cartel in Bangalore?

Most probably your friend must have mentioned that he was looking for a better quote. A simple rephrase might make the dealer more comfortable. Like saying that he heard the service is better here, or somebody recommended coming here etc
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Old 30th January 2012, 11:34   #9
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Default Re: Maruti Dealer Cartel in Bangalore?

Quote:
Originally Posted by msetlur View Post
My colleague did tell me that he had spoken to multiple dealers and that all of them were stuck to the standard quote for that particular model.
If your colleague called the dealers instead of walking into the showroom, he will get the standard quotes.

Ask him to walk into a showroom and tell the sales person that he is interested in booking the Ritz ASAP and see the difference.
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Old 30th January 2012, 14:45   #10
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Default Re: Maruti Dealer Cartel in Bangalore?

What you say makes a lot of sense Revintup and Pallavi. I will redirect my colleague accordingly. Thanks much
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Old 30th January 2012, 15:04   #11
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Default Re: Maruti Dealer Cartel in Bangalore?

When I was out buying an Estilo, three different dealers in Ernakulam offered the same price, freebees were also more or less the same. When I enquired about it, the explanation was that, they had instructions from MUL for keeping the price same for all dealers. In my opinion, it should be a mutual agreement among the dealers.
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Old 31st January 2012, 16:35   #12
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Default Re: Maruti Dealer Cartel in Bangalore?

I am not sure if this is a new thing because when we booked our SX4 a year ago we got different quotes from different dealers. In some places the price difference was as much as 50,000. Now you throw in the freebies and you could look to gain substantially.

We bought our car at Pratham Motors on Queens Road; you could try there.

Parik
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Old 2nd February 2012, 15:42   #13
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Default Re: Maruti Dealer Cartel in Bangalore?

Quote:
Originally Posted by parik_ind View Post
I am not sure if this is a new thing because when we booked our SX4 a year ago we got different quotes from different dealers. In some places the price difference was as much as 50,000. Now you throw in the freebies and you could look to gain substantially.

We bought our car at Pratham Motors on Queens Road; you could try there.

Parik
Usually the ex-showroom, registration and company discounts are the same across dealers. Only places where the quotes differ/negotiable are
1. Insurance quote and loan processing charges
2. Discounts on accessories
3. Freebies
4. Exchange price of old car
So its surprising there was a difference of 50K between dealers.

@OP, the sales guy should be convinced that you are serious in booking the car. Only then they will start on reducing the prices.
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Old 3rd April 2012, 09:45   #14
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Default Re: Maruti Dealer Cartel in Bangalore?

I got the same response when I went to a few different dealers. Ofcourse, I didnt say that I am looking for the best price. Just mentioned that my friend purchased it from here and said that service and discounts are pretty good.

But the moment you say that another dealer is giving a better price, they would look into your eyes and say "thats impossible because Maruti has clearly told all dealers, not to give any freebies other than the ones that are agreed upon and if anybody is doing that, their dealership license will be canceled".

Interstingly, he also offered to come with me as a customer to be a witness to the extra freebies that they are willing to give.

But one this is for sure. During December '11 timeframe, Maruti was giving a 25K to 30K discount on different models under the name of consumer offer. However, the different dealers were quoting different discounts. Some were ready to give 25K and others only 20K under the same name for the same model. I just couldnt help but wonder that maybe this is just a negotiating tactic to make the customer feel like a winner when he negotiates and gets the extra 5K discount.

However I didnt get any other discount or freebies what I got to know from all other dealers :(
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Old 14th October 2013, 23:51   #15
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Default Re: Maruti Dealer Cartel in Bangalore?

Quote:
Originally Posted by dhrupadh View Post
I got the same response when I went to a few different dealers. Ofcourse, I didnt say that I am looking for the best price. Just mentioned that my friend purchased it from here and said that service and discounts are pretty good.

But the moment you say that another dealer is giving a better price, they would look into your eyes and say "thats impossible because Maruti has clearly told all dealers, not to give any freebies other than the ones that are agreed upon and if anybody is doing that, their dealership license will be canceled".

Interstingly, he also offered to come with me as a customer to be a witness to the extra freebies that they are willing to give.

But one this is for sure. During December '11 timeframe, Maruti was giving a 25K to 30K discount on different models under the name of consumer offer. However, the different dealers were quoting different discounts. Some were ready to give 25K and others only 20K under the same name for the same model. I just couldnt help but wonder that maybe this is just a negotiating tactic to make the customer feel like a winner when he negotiates and gets the extra 5K discount.

However I didnt get any other discount or freebies what I got to know from all other dealers :(
I experience the same treatment recently. Every dealership has the same quote till the last rupee. Even the exchange value for old car is the same though they start with 5 to 10k lower for bargaining.
It seems when the old car is valuated the value is entered in a centralized system which all dealers have access to.
It is indirect monopoly in the market.
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