Car makers have rolled out a variety of year-end offers to buyers looking for meaty deals with benefits and discounts totalling Rs 30,000 to Rs 3,00,000 on a range of models.
Maruti Suzuki, Tata Motors, Hyundai, Mahindra & Mahindra, Honda, Renault and Toyota are offering cash discounts, exchange bonuses, discounted maintenance contracts, extended warranties and free or discounted accessories bundled in a package. The discounting comes after the industry recorded its best-ever November sales on the back of a fruitful Diwali.
These offers, which will last only till December 31, are generally made every year end to get rid of the year’s stocks. Generally, buyers prefer to buy vehicles that are made in the New Year to get a better resale value. Competitive pressures also determine discount levels.
This year’s discounts are, however, lower than last year. In December 2019, companies were keen to get rid of older-generation, Bharat Stage IV stocks before the deadline of March 31, 2020.
Maruti Suzuki
Maruti Suzuki, the country’s largest carmaker, has discounts ranging between Rs 30,000 and Rs 50,000. The Wagon R and Swift are sold with benefits of Rs 30,000 and 45,000 respectively. The Brezza SUV has a total benefit offer of around 40,000, while the Dzire is sold at a discount of Rs 35,000.
These discounts are, however, slightly lower than what was offered at the start of the festive season. For instance, the Maruti Suzuki S-Presso carried a discount of Rs 70,000 in October but its current discount is around Rs 50,000.
Hyundai
Hyundai, the country’s second-largest carmaker, has gone ahead with its annual ‘December Delights Offer’, offering discounts ranging between Rs 50,000 to Rs 1,00,000.
The Santro has a discount of Rs 50,000 while the Grand i10 Nios and Aura are being sold with discounts of Rs 60,000 and Rs 70,000, respectively. The Elantra continues to be the most heavily discounted model, at Rs 1,00,000. Hyundai’s fast-moving models, such as the Creta, Venue and Elite i20, do not have any discounts. For Hyundai, too, the level of discounts offered this year is lower than last December.
Tata Motors
Models of Tata Motors, the country’s third-largest carmaker, have seen the biggest reduction in discounts. The Harrier, for instance, has a discount of Rs 65,000 compared to around Rs 1.50 lakh offered in the same period last year.
Discounts on the diesel Tata Nexon SUV have also dramatically reduced to just Rs 15,000 from around Rs 50,000 last year. The Tiago carries a discount of Rs 25,000 while there is no discount being offered on the Altroz.
Mahindra
Mahindra & Mahindra, which has been under pressure after losing market share, is offering a discount of Rs 30,000 on the Scorpio, one of its highest-selling models. The premium SUV XUV500 has a discount of Rs 51,000, while the Alturas G4 is being sold with the biggest discount of all: Rs 3,06,000.
The Thar, which M&M claims has garnered bookings of over 20,000, does not have any discounts and currently has a waiting period of more than six months.
Honda
In line with the rest of the industry, Honda Cars India too has reduced discounting on its models compared to the festive period as well as last December. The Amaze carries a benefit of Rs 37,000, while the City has a consumer benefit offer of Rs 30,000. The Civic has the biggest discount of Rs 2,50,000.
Federation of Automobile Dealers Association (FADA) retail sales data for November show that sales grew 4 percent, making it the best November ever.
Manufacturers were able to liquidate their entire stock during the month due to strong consumer demand. Companies hope that the trend of high retail demand will play out in December as well.
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