Carmakers offer discount to boost demand

Passenger vehicle sales slumped to 3,03,358 units – down 0.96% over last year (3,06,305 units) and down 9.48% compared to April 2024 (3,35,123 units).
Image used for representational purposes only.
Image used for representational purposes only.

NEW DELHI: When one Sunil Kapoor had approached a car dealer last year for a hatchback, he received a quote of Rs 7 lakh, which exceeded his budget by about Rs 50,000. Fast forward to last week, he received quote for the same car but with a steep discount of Rs 60,000. Facing a slowdown in fresh demand after two years of blockbuster sales, carmakers have taken the route of massive discounts and attractive offers to lure buyers.

Passenger vehicle sales meanwhile slumped to 3,03,358 units – down 0.96% over last year (3,06,305 units) and down 9.48% compared to April 2024 (3,35,123 units).

Excepts of a few SUVs which continue to command a waiting period, every product including some best selling models, available in the market carries some form of reward. Add to it, many carmakers have either gone for steep price cut or launched new variants to attract buyers interest.

For example, Tata Motors last week said it is giving benefits up to Rs 1 lakh (depending on model and variant) for customers who have booked and await delivery of Nexon SUV. Nexon comes at a starting price of Rs 7.99 lakh and goes up to Rs 15.5 lakh for top variant. Mahindra & Mahindra launched new AX5 select variant of XUV 700 model. The variant is up to Rs 1.4 lakh more affordable than the corresponding AX5 variants and comes with top-end specs like dual 10.25-inch screens, a panoramic sunroof, and dual front airbags.

Maruti Suzuki is offering attracting cash discounts on most hatchbacks and few SUVs, maximum of which can be availed on low-selling Jimny. To revive the hatchback segment, MSIL had launched the new Dream limited editions of its three most affordable cars, Alto K10, S-Presso and Celerio. All three will be similarly priced at Rs 4.99 lakh (ex-showroom).

“The pre-monsoon period of May, June, and July traditionally sees a dip in automobile sales. In response to this seasonal trend, OEMs and dealers introduce various promotional programs, including discounts, offers, exchange offers, money-back schemes, and vouchers.

These initiatives play a crucial role in stimulating market demand during these months. The collective efforts of OEMs and dealers in rolling out these promotions are appreciated, as they contribute significantly to sustaining sales momentum during an otherwise low period,” said Manish Raj Singhania, president, FADA.

He added, “As per recent reports, we are anticipating the revival of the monsoon and expect automobile sales to rebound strongly, marking a significant contribution to sustained sales momentum. The last two years have witnessed a good sales momentum for the Automobile industry and on a high base, we expect the growth to be in single digit.”

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