As the festive season kicks in, leading carmakers have started offering discounts and other benefits to entice buyers to their showrooms. While entry-level hatchbacks are offered at discounted prices of Rs 20,000-30,000, some high-end premium e-SUVs are available at Rs 2 lakh less than the prevailing ex-showroom prices.
Manish Raj Singhania, President, Federation of Auto Dealers Association (FADA), said, “This festive season schemes are definitely on the roll and 5-10 percent discount rates are offered on the value of the model. This was not applicable last year because there was a supply shortage and demand was pretty huge. This time around passenger car dealers have built up stocks of 63 to 65 days. So dealers are ready for the season, they want to encash on it.”
Singhania, however, clarified that the schemes are only confined to entry-level hatchback and sedan segments and will be valid till the end of this month. As a result, no discounts are applicable for some high-end sports utility vehicles (SUVs), which command a huge waiting period of six months to a year.
“There are now some entry-level models which are getting over-accumulated at the dealerships and OEMs are pushing those models to us. But there are a few models which continue to be in heavy booking. These are majorly high-end SUVs (equipped) with loaded features. But the consumer cannot expect any kind of scheme or discount for these models. In fact, they need to book their desired vehicles now in order to get them delivered during the auspicious days.”
The offers
Maruti Suzuki, the leading passenger vehicle maker, is offering multiple discounts on select models in October. Most of the budget cars by Maruti Suzuki which are retailed at Arena chain of dealer outlets are offered with certain schemes.
While a discount of Rs 20,000 is offered for the Maruti Alto K10 (CNG), its petrol version comes at Rs 30,000 less than the ex-showroom price. Maruti Celerio also has a price cut of Rs 30,000-35,000 and the same is applicable for S-Presso at Rs 25,000-30,000.
Maruti Suzuki is also offering a discount of Rs 25,000 on all variants of WagonR and Swift. Eeco minivan also gets a price slash of Rs 10,000. Some dealers are giving a 20,000-30,000 reduction in the price of the Brezza (both CNG and Petrol versions). In addition to cash discounts of the aforementioned models, the company is also offering exchange bonuses in the range of Rs 10,000-15,000 and a corporate discount of Rs 4,000 on all discounted models.
For Maruti's premium offerings such as Baleno, Ignis and Ciaz, which are retailed at Nexa chain of outlets, discount offers of up to Rs 75,000 are doled out during this festive season.
Hyundai Motor India Ltd (HMIL), the second largest carmaker, is offering a discount of Rs 10,000 and 20,000 for the petrol and CNG variants of Aura, respectively. For its i10 Grand Nios, there is a cash benefit of Rs 30,000. The older version of the i20, which was phased out recently, is available at a discount in the range of Rs 10,000-50,000 depending on the trim.
Kona EV, which is available in a single variant, is getting a price cut of Rs 200,000. In addition to cash discounts for the aforementioned models, the company is also offering exchange bonuses in the range of Rs 10,000-25,000 and a corporate discount of Rs 3,000.
MG Motor India has introduced new prices for ZS EV, which is now available at a starting price of Rs 22.88 lakh for the Excite variant, Rs 24.99 lakh and Rs 25.89 lakh for the Exclusive and Exclusive Pro variants, respectively. The company has also announced a limited-time special anniversary pricing for MG Hector. While the petrol variant now comes at a starting price of Rs 14.72 lakh, the diesel variant starts from Rs 17.98 lakh. Additionally, the company is also offering an exchange benefit of Rs 50,000 for its entire lineup.
Honda Cars India Ltd (HCIL), under the 'The Great Honda Fest' promotion, is also offering benefits of up to Rs 57,000 for Amaze entry-level sedan and Rs 75,000 for City midsize sedan in the form of cash discounts, customer loyalty bonuses, accessories, corporate discounts and special exchange benefits. Prospective customers for both models can either avail cash discounts or opt for complimentary accessories for the same value.
Renault India too has come up with festive offers on all its three models — Kwid, Triber, and Kiger — for this month. All these models are also offered with an additional corporate discount of Rs 10,000 and accessories worth Rs 10,000 for customers referred by existing customers.
As per the French carmaker’s website, benefits of up to Rs 5o,000, including a cash benefit of up to Rs 20,000 on select variants, are offered on Triber. Beyond that, exchange benefits of up to Rs 20,000 on select variants and an additional Rs 12,000 cash for loyal customers are also offered.
The company is also offering benefits of up to Rs 50,000, including a cash benefit of up to Rs 20,000, on select variants for Kwid. Exchange benefit of up to Rs 20,000 and an additional Rs 10,000 cash benefit for loyal customers for this model.
Furthermore, benefits of up to Rs 65 000, including cash benefits of up to Rs 25 000 are being offered for Kiger. An exchange offer of Rs 20,000 on select variants and an additional Rs 20,000 cash benefit for loyal customers on select variants are also available for this model.
Tussle over models
“Dealers are stocked with inventory of more than 70 days. The stock buildup is in anticipation of record sales during the festival season. However, on few models which are in less demand, dealers have started offering discounts, which are majorly in small and compact car segments,” Puneet Gupta, Director (India & ASEAN Automotive Sales Forecast), S&P Global Mobility.
Meanwhile, the FADA stated that it has urged OEMs to deliver not all models but only those which are higher in demand. However, the dealer body is yet to reach an amicable resolution.
“We have been trying to convince the OEMs not to bill vehicles that are getting overstocked. We are requesting them to start manufacturing and billing vehicles which are desired by the market and booked at the dealerships. Although it is their prerogative, we are not getting the desired vehicles at the dealerships. Dealers are also not taking risk this time as they missed out on the retails last festive season because of a shortage of vehicles. But this time they want to be sure that they have vehicles when the demand comes in.”
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