Major automakers like Maruti Suzuki, Hyundai, Tata Motors, Skoda, and Honda are all providing cash discounts. (Image source: Freepik)
Car discounts
galore! Car manufacturers and dealers are offering substantial discounts, including cash discounts, exchange bonuses, and additional benefits, even on popular models, in an effort to clear a significant inventory buildup caused by slowing sales.
According to trade insiders, major automakers like
Maruti Suzuki
,
Hyundai
,
Tata Motors
,
Skoda
, and Honda are all providing cash discounts, exchange bonuses, and extra benefits on their popular models.
Maruti Suzuki’s average discount per vehicle increased by 50% to Rs 21,700 in the first quarter ended June, compared to Rs 14,500 in the last quarter of FY24, according to an ET report.
Industry executives and dealers have reported that these discounts are among the highest seen in the local market since FY20, when promotional offers were rolled out to liquidate inventory before the transition to Bharat Stage VI emission standards.
Car discounts
The industry started the fiscal year with normal stocks of around 300,000 vehicles, sufficient to meet demand for 30 days. However, sluggish sales led to an additional 100,000 units, prompting car makers and dealers to offer promotional schemes over the last four months, with benefits this month matching those in FY20. “The discount levels now are among the highest I have ever seen in the market,” an industry executive said on condition of anonymity.
Passenger vehicle sales in the country reached a record high of 4.23 million last fiscal, partly due to pent-up demand after a global semiconductor crisis limited production for several months.
However, sales have slowed down in the new fiscal year after three years of robust growth. A senior industry executive attributed the increased discounts to fewer launches this year compared to last year, when multiple SUVs were lined up ahead of the
festive season
and received a good response.
Automakers and dealers are relying on the upcoming festive season, starting with Onam in Kerala next month, to boost market momentum. “Kerala will be a harbinger of what we can expect during the festive season this year,” said the senior industry executive.
“If sales take off and inventory gets liquidated, wholesales will move. Or else, dealers may be hesitant to take more stocks. So far, vehicle sales in Kerala have been faring well due to inflow of remittances and better natural rubber prices.”
