Hefty Discounts Fail To Boost Auto Sales As 2018 Draws To A Close
Year-end discounts failed to lift auto sales in December, adding to the slowdown after a poor festival season, according to BloombergQuint’s survey of seven dealers from across the country.
Sales volumes for most automakers declined month-on-month by 10-15 percent, according to the survey. That led to an inventory pile-up at yards, dealers said.
Consumers usually stay away from buying new vehicles in December as new year’s registration date offers a better resale value. While discounts helped to some extent, they weren’t enough to revive sales, the survey found. Even new launches failed to spur demand. Though there is a waiting period for some vehicles, carmakers hoped for a more enthusiastic response to new launches—including Mahindra & Mahindra Ltd.’s Marazzo.
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Two-wheeler sales seen slowing down in December as rural demand remains muted.
Liquidity Crunch Hits Truck Sales
According to the survey, the liquidity crunch faced by non-banking financial companies hurt truck sales due to selective funding.
India’s largest carmaker is offering discounts of upto Rs 75,000. For Baleno and Brezza, the offer is upto Rs 40,000 (Rs 25,000 exchange + Rs 15,000 cash discount)
The waiting period for new Ertiga is three months.
Here’s a snapshot of discounts top automakers are offering to boost sales:
Nexon: Rs 35,000 (Rs 15,000 cash + Rs 20,000 exchange)
Tigor: Rs 35,000 (Rs 15,000 cash + Rs 20,000 exchange)
Hexa: Rs 50,000 cash
Mahindra & Mahindra
Balero: Rs 50,000
Scorpio: Rs 85,000
Marazzo waiting period is 6 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
The company has offers on down payment and interest rate. Paytm and other benefits add up to Rs 7,500 on the RTR160.