Desperate car makers offering cash rewards and free insurance to Indian buyers
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The festival season is just round the corner and as expected most of the car makers are luring Indian buyers by doling out huge discounts and freebies. The gloomy market situation and piling inventories have left car makers with no option but to work out new strategies in order to recapture the imagination of their customers.
Consequently, for attracting prospective buyers, the car makers are leaving no stone unturned in their quest for re-establishment of faith in the hearts of Indian car enthusiasts. Automotive giants like Maruti Suzuki, Tata Motors, Hyundai, Volkswagen, Honda and Ford among others are alluring Indian customers to visit their stores by offering concession in car prices, free insurance and car accessories.
Sudhir Rao, Managing Director (MD), Skoda India, said, “This festive season will see lower levels of sales against previous years as negative sentiments continue to impact demand.”
Speaking on the company's predicament, Mayank Pareek, Managing Executive Officer, Sales and Marketing, Maruti Suzuki, said, “There has been no breathing space for us for the last 10 months as the times have been tough. We are already at the peak of discounts and going beyond this will be difficult.” The company is shelling out cash rewards between Rs. 30,000 and Rs. 35,000 on the sales of its petrol models of Alto, Estilo, WagonR, A-Star cars along with an additional discount of Rs. 25,000 on a car exchange.
Hyundai, the South Korean auto maker, has provisioned its customers of the i10 hatch by offering them with savings of Rs. 44,000 comprising a gift cheque and loyalty bonus. Interestingly, in a bid to lure the entry-level small car buyers, the company is offering free insurance and loyalty bonus of Rs. 24,250 on its Eon hatchback. Similarly, on the lines of Eon and i10, the new Santro owners are also entitled to a saving scheme of Rs. 40,000, which free insurance as well.
Jnaneswar Sen, Senior Vice President (VP), Sales and Marketing, Honda India, said, “There is nothing very positive in the market at the moment, though we expect some revival in the festive season.” Following the trend, the Japanese auto maker is tempting Indian car enthusiasts by presenting them with rewards amounting between Rs. 15,000 and Rs. 40,000, which cover insurance along with a cash gift, on the purchase of Brio hatchback. Honda India is also offering cash benefits of Rs. 35,000 on the sales of its City saloon.
Arvind Saxena, Managing Director (MD), Volkswagen India, said, “There is not much excitement at the moment.”
Since, its launch the Mahindra XUV500 has hit hard the sales of Ford Endeavour and Ford India is devising a strategy to recoup for its lost sales. The company has come up with a 'Festival Accessory Pack' and will provide a cash benefit of Rs. 50,000 comprising free insurance as well. Rejoicing the sales of 2 lac Ford Figo hatchback, the company is giving incentives of Rs. 25,000 to Rs. 28,000 to its new customers.
The car sales in the country have plummeted recently due to impervious high auto finance rates and ever increasing fuel prices, which have added to the miseries of car makers. Doling out of extraordinary discounts and goodies when the market is facing weak growth, underlines the desperation of auto companies operating in the country, which are working hard in order to attract buyers towards their showrooms.
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