India's largest car maker, Maruti Udyog Ltd, a unit of Japan's Suzuki, announced a $10.4 million sales promotion on Friday that could help reverse a sales decline and make it more attractive ahead of an initial public offering.

The automaker, 54.2 per cent-owned by its Japanese parent and 45.54 by the Indian government, said in a statement customers who buy between January 3 and February 28 could win a prize after participating in a draw and answering a question.

Every buyer is assured of a gift in its 'Change Your Life' campaign which includes two cash awards of Rs 2.1 million each as well as a host of other prizes.

Although Maruti has a 49 per cent slice of the domestic market because of its dominance of the small car segment, this is down from more than 80 per cent four years ago due to competition from new entrants -- Hyundai and Fiat and domestic firm Telco.

The New Delhi-based firm, which makes 10 models in India, said it would also offer insurance for one rupee on its Omni van, the WagonR, Zen and Alto compact cars and the Esteem sedan.

Indian car makers have offered huge discounts and a host of freebies this fiscal year in a bid to kickstart a sluggish market that has helped boost demand since July.

Maruti's sales in April-November 2002, the first eight months of this fiscal year, are 0.83 per cent lower than a year earlier at 221,811 units though sales have recovered since it cut the price of its top model by up to nine per cent in July.

Over the same period, India's domestic passenger vehicle sales have grown 4.95 per cent.

Maruti fought back to profit in 2001-02 (April-March) from its first ever loss in the previous year caused by falling sales and rising costs.

The government plans to sell 20 per cent of the carmaker to the public as part of its privatisation drive this year.

Maruti competes with 10 other firms in the domestic car market, which is forecast to grow 10 per cent annually this decade.