Car buyers could hardly have asked for more as most auto companies are doling out offers and discounts in an effort to attract shoppers who traditionally put off purchases during the monsoon season. And while offers are not unusual around this time of the year, discounts this July are higher than the previous year.
Passenger car sales typically drop 15-20 percent every year on an average, during monsoon months, according to the estimates from the dealers. In June this year, car sales dropped 5.18 percent, the second straight month of decline, data from the Society of Indian Automobile Manufacturers showed.
To counter this weak demand, most auto makers have increased discounts on their top models by 5-10 percent this year, with some exceptions, dealerships of Maruti, Hyundai, Tata Motors and others told BloombergQuint. In fact, car makers are also piling on other benefits like free insurance, exchange, loyalty bonus, gift cheques etc, in addition to discounts.
With the exception of three models – Vitara Brezza, Baleno and S-Cross – Maruti is offering benefits that include exchange and consumer offers across its line-up ranging from Rs 15,000 to Rs 72,000. The highest discount is on LXI variant of Ritz. Vikas Patni, the assistant sales manager said these offers are market-driven.
Maruti’s closest rival Hyundai is also pulling out all the stops to woo buyers, with discounts in the range of Rs 40,000-1,50,000 across various models. Discounts this year are 10 percent higher compared to the previous year. “We have introduced discounts on models like i20, Grand i10, Eon, Elantra and Verna this year to push sales,” Ashish Bhavsar, director of sales and marketing at the Pramukh Hyundai Dealership said.
Riding high on the success of Taigo, Tata Motors is offering lower discounts than its competitors. “Natural and retail inquiries drop during this season and its mostly the first-time buyers who show interest in purchase. Our discounts range from Rs 10,000 to 20,000, which is relatively lower than our competitors,” Noorallaha, Assistant General Manager of the Concord dealership of Tata Motors said.
At Rs 20,000, the discount on Zest is the highest that Tata Motors is offering on any single model. Tata’s sports utility vehicle Storm, and Indigo carry a discount of Rs 10,000. The car maker is also trying to boost sales of popular models like Nano and Indica through these offers.
Honda is offering discounts on many of its models but said that had nothing to do with bridging the monsoon sales deficit.
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