Up to Rs 5 lakh off as car dealers slash prices to clear unsold 2024–25 stock

Car discounts have reached Rs 5 lakh

• Discount ranges between Rs 1 lakh to Rs 5 lakh
• Inventory of 2025 and 2024 depends on the dealer
• This inventory was built pre-GST cut of Sep'25

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The year 2026 may have began on a strong note for the automotive industry, dealers across the country remain saddled with ageing unsold inventory, with showrooms still carrying vehicles manufactured in 2025 and even 2024 more than two months into the new year.

From entry-level small cars to high-demand sport utility vehicles (SUVs), manufacturers in partnership with dealers are offering steep discounts ranging from Rs 1 lakh-Rs 5 lakh previous older models across fuel types and powertrains to clear stock.

Dealers attribute the carryover inventory to what they describe as “dumping” of vehicles by manufacturers through much of 2025, when wholesale dispatches to dealerships outpaced retail demand. The mismatch came at a time when customer purchases had slowed in anticipation of the Goods and Services Tax (GST) reduction, which was announced in September 2025.

India’s largest carmaker Maruti Suzuki is offering discounts on several of its high-volume models manufactured in 2025. The entry-level Alto is being sold with benefits of up to Rs 1.44 lakh, while the compact SUV Brezza carries a discount of Rs 1.92 lakh.

The mid-size SUV Grand Vitara is available with benefits worth Rs 1.93 lakh. These offers extend to some of the company’s best-selling models such as the Wagon R, Swift and Baleno, many of which were produced in 2025.

Mahindra & Mahindra, one of the country’s largest SUV makers, is offering discounts of around Rs 2 lakh on 2025-manufactured units of its flagship models, including the XUV700 and the Thar Roxx. The Scorpio range carries benefits of around Rs 1.25 lakh.

Among global brands, Czech automaker Skoda is offering one of the steepest discounts in the industry, with benefits of up to Rs 5 lakh on the 2025-manufactured Kodiaq SUV. Its group brand Volkswagen is offering the 2025-built Taigun compact SUV with discounts of up to Rs 3 lakh.

Tata Motors also has unsold stock from previous production cycles, particularly in its electric vehicle portfolio. The company is offering the Curvv EV with discounts of around Rs 1.71 lakh and the Nexon EV at about Rs 1.41 lakh, both from 2024 inventory. The earlier version of the Punch EV, which recently received a facelift, is available with benefits of up to Rs 1.20 lakh.

Japanese automaker Honda is also looking to clear older inventory of the hybrid version of the City sedan, offering discounts of around Rs 2 lakh on the model.

“Demand has been strong since the start of 2026. We offer the model year 2025 stock only if the customer is keen on a bigger discount or specifically asks for it. There is virtually no margin left for dealers on such cars because the discount is substantial,” said a Mahindra dealer based in Mumbai.

Retail sales data suggests demand has improved in recent months. Vehicle registrations for January and February together indicate a 15 percent increase in volumes. According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle inventory levels at dealerships declined to about 27–29 days by the start of March, down from 32–35 days at the beginning of February, indicating that dealers are gradually clearing older stock.