With just a 3.6 percent increase in sales of cars during financial year car makers are staring at yet another disappointing closure for the year.
Car makers are doling out mouth-watering discounts of more than Rs 1.5 lakh and other offers such as extended warranty schemes as dealers race to meet their year-end sales targets.
With just an 8-percent rise in passenger vehicle sales (including a 3.6 percent increase in sales of cars) during this financial year, car makers are staring at yet another disappointing closure for the year.
Therefore, to make up for the loss, manufacturers are pushing for even bigger discounts to entice consumers especially on those models which have not found too much demand.
Tata Motors for instance announced a nationwide offer on its range of passenger vehicles which is valid up to the end of this month. While premium sports utility vehicle Hexa is offered with benefits of Rs 1 lakh, the Zest sedan is sold with benefits totaling Rs 65,000. The Safari Strome comes Rs 80,000 benefit offer. All Tata’s passenger vehicle range, except the Nexon, now come with an insurance scheme of just Re 1.
French car maker Renault announced a price reduction of around Rs 1 lakh on the Duster, its top-selling SUV, on account of higher degree of localisation. There is a further discount of Rs 40,000 on the vehicle in addition to Re 1 insurance. Buyers of Kwid can benefit from a four year warranty scheme as well as a reduced interest rate on car loan of 7.99 percent.
German giant Volkwagen, is selling the Vento with a benefit of Rs 1.2 lakh in addition to a direct cash discount of Rs 25,000. The compact sedan Ameo can be yours with a benefit scheme totaling Rs 70,000 and a cash discount of Rs 25,000. The Polo hatchback can be bought with a benefit scheme of Rs 60,000 and a cash discount of Rs 25,000.
Discounting level has been rather subdued at Maruti Suzuki, the country’s largest car maker. This is because most of its recent products such as the Baleno, Swift, Dzire, Brezza and S-Cross have met with huge success and therefore, carry no offers.
But some of its older products such as the Wagon R can be had with a cash discount of Rs 30,000 and an exchange bonus of Rs 35,000. Similarly, the Ciaz diesel has a cash discount of Rs 30,000 and an exchange bonus of Rs 50,000. Ertiga, the country’s largest-selling people carrier is offering Rs 20,000 cash discount and a Rs 45,000 exchange bonus.
Rival Hyundai is offering a direct ash discount of Rs 35,000 on the Grand i10 and an exchange bonus of Rs 35,000. The mini car Eon is carrying a cash discount of Rs 30,000 and an Rs 10,000 exchange bonus. There are no offers on the Elite i20, Creta and the Verna.
Struggling car maker Honda is not too far behind in the discounting race. The Japanese brand is offering Rs 30,000 discount on the Jazz along with one year free insurance. The CR-V can be had with a whopping discount of Rs 1.5 lakh.Offers given away by dealers are usually over and above those offered by manufacturers and therefore vary from city to city. Usual dealer-level offers include free accessories, silver or gold coin, discount on annual maintenance contracts and free registration.