Automakers May Not Be Able To Press The Pedal In September: BQ Survey
Higher insurance premium, price hikes and a time considered to be inauspicious by some to make new investments may spoil the party for Indian automakers. A BloombergQuint survey conducted among 35 car and two-wheeler dealers spread across the country shows sales slowing down for at least some of companies in September.
Rising commodity prices and a weaker currency has forced automakers to pass on the cost, while a longer third-party insurance tenure mandated by the insurance regulator has led to higher insurance premium pay outs. New launches and promotional offers have failed to get buyers to the showrooms likely due to the onset of pitrupaksha a period when Hindus typically stay away from making new investments.
Individual factors are also at play for some car and two-wheeler makers, said the dealers surveyed by BloombergQuint.
- Offering discounts of up to Rs 60,000 on entry-level cars
- Strong demand for Brezza and Baleno
- One-month waiting period for Marazzo, launched this month
- Discounts being offered on XUV 5OO and Scorpio
- Cash discounts of more than Rs 50,000 on Tiago and Tigor
- Top seller: Tata Nexon
- Hiked prices by as much as Rs 900 in September
- Strong demand for Xtreme 200R
- Another 200cc bike will be launched this year
- Offering Rs 2,000 discounts on scooters and mopeds
- Launched a new variant of Star City+ ahead of the festive season
- Offering cash discounts of Rs 1,500-2,000 on Discover, Platina and V15 bikes
- Additional offers of up to Rs 5,000 via easy financing and exchange offers
- No discounts on 350cc variant, waiting period of 4 weeks
- Expected price range of Rs 4-4.5 lakh for Continental GT and Interceptor