BloombergQuint Survey: Tepid Demand To Hurt Auto Sales In January Despite Discounts
Discounts failed to boost sales in the new year as the slowdown in auto sales continued because of weak demand and a high base, according to a BloombergQuint survey.
While sales improved over the previous month, there hasn’t been a substantial pick-up in demand, said Vinkesh Gulati, partner, United Automobiles, attributing it to the heavy discounting rolled over from last month and some festive buying on account of Makar Sankranti and Pongal.
Two wheelers are likely to report better sales than passenger car, according to the survey of seven dealers.
Automobile sales growth has slowed and demand remained subdued during the festival quarter last year because of higher fuel prices and increased upfront insurance costs. Most companies offered year-end discounts but that didn’t help and inventory piled up. They have continued the offers.
Here’s what BloombergQuint found in the dealer survey:
- India’s largest carmaker is offering discounts of up to Rs 75,000 (excluding Ertiga). For Baleno and Brezza, the offer is worth Rs 40,000 (Rs 25,000 exchange plus Rs 15,000 cash discount)
- The waiting period for the new Ertiga is eight weeks.
- WagonR bookings cross 12,000
- Nexon: Rs 35,000 offer (Rs 15,000 cash plus Rs 20,000 exchange)
- Tigor: Rs 35,000 (Rs 15,000 cash plus Rs 20,000 exchange)
- Hexa: Rs 50,000 cash
Mahindra & Mahindra
- Bolero: Rs 50,000
- Scorpio: Rs 85,000
- The waiting period for the Marazzo is six weeks
- Offers a discount of Rs 3,000 in collaboration with Paytm
- 555 (five-year free insurance, warranty services); cash discounts up to Rs 10,000 on the Dominar
TVS Motor Company
- It has offers on down payment and interest rates. Paytm and other benefits add up to Rs 7,500 on the RTR160
- No offers