The Maruti Udyog Limited (MUL) dealer -- among the top-five MUL dealers in the Capital -- used to book anywhere between 20 to 25 Maruti 800s a day. However, for the last 10 days, this figure is down to eight to 10 cars a day.

All the dealers who were contacted said they were facing a tremendous drop in sales. After speaking to almost all the dealers, it appears that on an average, Maruti sales have been down by 20 to 25 per cent over the last fortnight.

MUL, however, refused to let out any figures saying that these can be known only next month.

Dealers also confirmed reports about cash sops for the festive season offered by MUL. The company is offering Rs 2,500 on Maruti 800 Standard, Rs 3,000 on Maruti 800 Deluxe and Rs 3,500 on Zen VX to dealers who have achieved previous sales target. This scheme would continue till the end of November. These sops are in addition to the existing dealer margins that are around Rs 5,000 on a Maruti vehicle.

These incentive schemes are seen as an alternative way to cut prices. At present, most dealers are offering a discount of between Rs 3,000 and Rs 3,500 on Marutis. Some good bargainers are also managing a discount of around Rs 4,000 on Maruti 800.

The company would give additional benefits to dealers who achieve the current targets, though these are yet to be announced.

On the Maruti Zen, MUL is offering Rs 3,500 to dealerships that have achieved previous targets and Rs 5,000 per Maruti Zen sold if the dealer has surpassed the target by 10 per cent.

Citing reasons for the major drop in sales, a dealer said it is partially due to recession and the incoming of competition. An article in a leading newspaper that advised people not to go in for a car before March next year is also said to have played havoc with the MUL sales graph.

Last week, MUL had begun an incentive scheme for Zen VX. Under this scheme, the company has hiked up the interest rate on the booking amount from 8 to 20 per cent. This scheme is on till October 31.

``Buyers are, in fact, demanding heavy discounts these days. And we have to pass on these incentives to the buyers to push up sales, which are down these days because everyone is awaiting the new cars,'' said another dealer, requesting anonymity.

Dealers are expecting the rest of the year to remain lean in terms of sales. In any case, sales drop after the festive season, because buyers prefer to buy in the new year, since the car's resale value goes up.

According to Murad Ali Baig, an automobile expert, people would wait for another six months, by which time around 10,000 units of all the new small cars should be on the roads, before they let out their final verdict. ``Only then will they know which car is the best buy,'' Baig added.

Meanwhile, all the top sales executives at the MUL dealerships are competing with one another to bag bulk orders, that would mostly come from government agencies. Few sales executives are seen in the showrooms.

MUL posted a 1 per cent growth in sales during the first quarter of the current financial year, whereas the passenger car segment saw a drop in sales to the tune of -2.5 per cent.