Discounts to up the sale count

Subdued consumer sentiment, delayed purchases and persistent heavy rainfall have led to sizeable inventory levels (stocks) with auto dealers. Passenger vehicle makers are now pinning their hopes on the festive season for a turnaround, especially in the urban and semi-urban areas. A boost in car and jeep sales is also expected following favourable rainfall in certain regions, which is likely to improve agriculture output and enhance the purchasing power in rural areas.

The Federation of Automobile Dealers Association puts the inventory at 7.8 lakh vehicles, valued at ~77,800 crore. Faced with such challenges, passenger vehicle makers and dealers are trying to woo potential customers with new product launches, reduced waiting period and attractive offers. With sales dipping, depending on the brand and model, discounts starting from ~20,000 and going up to a few lakhs are on offer.

Companies like Maruti Suzuki, Hyundai Motor, Tata Motors, Mahindra & Mahindra and Honda Cars are leading from the front in terms of festive sops.

Market leader Maruti Suzuki is offering discounts ranging from ~10,000 to ~70,000 across models like Swift, Celerio, Brezza, Alto K10, Eeco, Fronx, Baleno and Ignis. Jimny is seeing one of the highest discounts among Maruti models, going up to around ~1 lakh. According to Chandigarh-based dealers, majority of the cars are readily available except Invicto, which has a waiting period of three months.

Similarly, in case of Hyundai, all its models are readily available except a few variants of Creta. Dealers say discounts vary depending on models and are in the range of ~20,000 to ~1.5 lakh, with the maximum discount being offered for Tucson. There is no discount on Creta.

Tata Motors recently launched its ‘Festival of Cars’, with offers for this festive season on cars and SUVs. According to the company, customers can enjoy cumulative benefits of up to ~2.05 lakh. The special festive offers are available for a limited period till October 31 on all cars and SUVs powered by petrol, diesel and CNG.

Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd, says, “As the festive season unfolds, we are delighted to present a spectacular array of enticing offers for our valued customers. With total benefits of up to ~2.05 lakh on internal combustion engine vehicles, this year’s festive celebration includes limited-time price reductions, along with attractive exchange and cash benefits, making it the perfect moment to embrace the spirit of new beginnings.”

Similarly, Tata.ev has announced offers on its bestselling models — Tiago.ev, Punch.ev and Nexon.ev. Focused on making EVs more accessible to mainstream customers, prices have been reduced by up to ~3 lakh for Nexon.ev and up to ~1.2 lakh for Punch.ev.

Mahindra & Mahindra (M&M) is offering discounts ranging from ~70,000 to ~1.5 lakh. According to local dealers, except Bolero and Scorpio Classic, all the models offered by the utility vehicle maker have a waiting period of two to five months.

Toyota Kirloskar Motor is offering discounts ranging between ~15,000 and ~45,000 on select models. According to the dealers, almost all the models are readily available except Innova Hycross, which has a waiting period of eight to 12 months.

To target potential customers, Honda Cars India Ltd has launched a multi-media campaign for ‘The Great Honda Fest’. Kunal Behl, Vice-President, Marketing and Sales, Honda Cars India Ltd, says, “Catering to the demand across key markets, we have also introduced a special festive price for the ‘S’ variant of Honda Amaze, available both in MT and CVT, to make it more accessible. As part of the Great Honda Fest, the company is offering discounts up to ~75,000 on Elevate, up to ~1,14,000 on City, up to ~90,000 on City e:Hev and up to ~1,12,000 on Amaze.”

Availability of SUVs

While some automakers have a huge inventory, others like Toyota Kirloskar Motor and Mahindra & Mahindra are gearing up to meet the high demand. On the waiting period, Sabari Manohar, Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, says, “Our operational enhancement strategy, including addition of a third shift, has helped to streamline the supply situation, thus catering to the rising demand. For certain models, especially Urban Cruiser Hyryder, a streamlined supply situation has led to a reduction in waiting periods.”

JSW Motor India is also trying to ensure better availability, reduced waiting periods and a seamless buying experience for MG customers across India. “The automotive industry is navigating through some challenges, with demand stabilising and the extended monsoon affecting certain areas of the economy, along with the expected seasonal impact of the ‘Shraddha’ ritual period. However, the ongoing festive season, coupled with new product launches and attractive offers, is anticipated to bring a slight recovery in sales and renewed momentum in the market,” says Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India.

“We have rolled out special festive financing schemes, exchange bonuses and discounts on select models, which have generated an encouraging customer response, especially in the EV segment,” Bajwa adds.