Auto dealers are now extending discounts to sports utility vehicles (SUVs) such as Mahindra Thar (3-door version) and XUV 7OO, Kia Seltos, Toyota Hyryder and Fortuner, Maruti Suzuki Grand Vitara and Jimny as increase in production has resulted in higher despatches of these hot-selling vehicles. Since last year, prospective buyers have been able to bargain for reduced sticker prices on sedan and hatchback models, while SUVs were being sold at nil discounts due to high demand.
“At this moment, now every model is available off the shelf. As soon as the product gets readily available, carmakers resort to discounts and exchange offers,” Manish Raj Singhania, former president Federation of Automobile Dealers Associations (FADA) told Moneycontrol. He also revealed that SUVs across various price points are sold at discounted rates.
As per the data shared by the Society of Indian Automobile Manufacturers (SIAM), Utility Vehicles (UVs) contributed nearly 65 percent of total Passenger Vehicle (PV) sales of 20,81,143 units during April-September 2024 period. During the same period, while passenger car sales (comprising sedans and hatchbacks) declined by 18.5 percent Year-on-Year (YoY) at 6,60,098 units, UV sales rose by 13.2 percent at 13,43,363 units.
As per Vahan (the government vehicle registration portal) data, PV retails went up by nearly 20 percent at 4,02,124 units during October (till 30th) vis-à-vis 3,36,384 units in the same month last year. A FADA source revealed that SUVs are contributing roughly 55 percent of the total retail numbers in October 2024.
Across the spectrum offers
Affordable subcompact SUVs such as Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon, Kia Sonet continue to attract cash discounts in the range of Rs 10,000-40,000 over the last three to four months. This is in addition to 5,000-10,000 festive discount and an exchange bonus of Rs 15,000 offered for these models.
In the premium SUV segment, the rates of discount shoot up further. While Maruti Suzuki’s Grand Vitara gets discounted by up to Rs 50,000, dealers are ready to sell Jimny lifestyle SUV by reducing the ex-showroom price by Rs 1.75-2.3 lakh. Furthermore, there is a Rs 1 lakh consumer offer on the Alpha variant of Invicto premium MPV.
This is in addition to the scrappage bonus of Rs 35,000-65,000, additional exchange bonus of Rs 20,000-30,000, promotional offer of Rs 30,000, and q rural discount of Rs 3,100 for the aforementioned models.
On hefty discounts currently being offered to consumers, R.C. Bhargava. Chairman, Maruti Suzuki noted that since the industry has created large inventories, they will have to give more discounts to clear that.
Close on the heels of launching the Thar Roxx, Mahindra and Mahindra (M&M) has come up with a discount offer of Rs 1.25 lakh for its three-door version (select trims). While the company spokesperson didn’t respond to queries sent by Moneycontrol, a dealer source revealed that many customers are switching to 5-door Thar.
The homegrown utility vehicle maker has already gone for a price cut of Rs 2 lakh on certain variants of XUV 7OO. The premium SUV now comes with a Rs 30,000 exchange bonus (Mx3) and Rs 40,000 cash discount (Ax7 & Ax7 L trims). Furthermore, Mahindra XUV4OO EV comes with a deep discount of Rs 3 lakh.
Similarly, Kia India is offering total benefits of Rs 1,83,000 for the Seltos, which was given a mid-cycle refresh last year. The benefits include a cash discount of up to Rs 40,000, an additional customer offer of Rs 52,000, an extended warranty of up to Rs 26,532, exchange offer of up to Rs 60,000. Its EV6 battery-driven SUV comes with a discount of Rs 12 lakh.
Honda Cars India's Elevate SUV, which was launched last year, gets total benefits of up to Rs 75,000. Toyota Kirloskar Motor's (TKM) discount offer on SUVs includes Rs 30,000 for Hyryder, Rs 35,000 for Urban Taisor and Rs 75,000-100,000 for Fortuner. While Jeep is offering a price reduction of up to Rs 2 lakh on Compass, customers going for MG Gloster can save up to Rs 6 lakh. In the luxury segment, customers can avail a discount of Rs 10 lakh for Audi Q8 etron, Rs 7-10 lakh for BMW X5, as per dealer sources.
Some SUVs are bucking the trend
Singhania from FADA, however, clarified that no discount offers are applicable to best-selling models such as Hyundai Creta, Maruti Ertiga, Mahindra Thar Roxx (5-door), etc.
“There are a lot of models which still continue to have no discount. So that's all majorly in SUV (segment) and have a waiting period. So, there is a balance of both. While there are models which are in good discounts, and there are models which are not available, like in shortage or in waiting period,” Singhania noted.
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