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      Auto makers offering heavy discounts during the year-end

      CarTrade Editorial Team

      CarTrade Editorial Team

      With just few days left in the calendar year of 2011, Indian car manufacturers are gearing up to elevate sales of their car models by giving year-end discounts to buyers. Almost every Indian automobile manufacturer is planning to offer discounts on petrol as well as diesel models. Car sales have gone down due to increase in interest rates and fuel prices. A middle class Indian cannot afford to shell out a major part of his earnings on fuel. As per the reports of Society of Indian Automobile Manufacturers (SIAM), in comparison to last year figures, sales dipped by 3.53% in April-November 2011. 

      Maruti Suzuki India Limited, the leading car manufacturer in India, has also witnessed decrease in sales volumes. The company has faced 17% dip in car sales during April-November. According to Chief General Manager of Maruti Suzuki, Shashank Srivastava, the company is offering higher discounts at the end of 2011 as compared to December 2010.

       

      Indian Car Market
       

      Maruti Suzuki is enticing customers with hefty cash discounts on its car models, namely the WagonR, Estilo, Alto and A-Star. The Indian buyers are also eagerly waiting for discounts on Maruti's Swift, along with diesel version of SX4 and DZire car models. The demand for these vehicles have initiated as diesel is cheaper than petrol. This is one of the reasons why petrol models manufactured by Maruti Suzuki are losing customers.

      The Head of sales and marketing, Hyundai Motor India Limited, Arvind Saxena has stated that as compared to October and November, rebates have increased by 7-8% in December. This is evident from the fact that Hyundai is offering rebate of up to Rs. 50,000 on its Santro and i10 car models. This rebate figure will fluctuate according to the stock available with dealers.

      India’s third largest passenger car manufacturer, Tata Motors Limited is reportedly offering rebates on petrol as well as diesel variants to boost its sales figures. Starting from the world’s cheapest car, Nano, the company is offering a cash discount of Rs. 10,000-15000 on this model. Apart from Nano, Tata Motors is providing discounts on its other models too. 

      With all Indian automobile giants competing to attain most sales numbers at the last moment, Ford India Private Limited is also joining the league to boost the car sales by providing rebates on both petrol and diesel cars. Ford Fiesta and Ford Figo are among the different diesel models that are on offer at discounted prices.

      The analyst of Brics and Securities Limited, Umesh Karne has said that in year-over-year comparison, the rebate over passenger cars has been increased by Rs. 25,000 to Rs. 30,000. The slowdown in the Indian automobile industry has prompted various car manufacturers to provide discounts on new models too. The Volkswagen Vento, Ford Fiesta and Indica Vista are some of the new models that have made up to the list of discount offerers.

      Mahindra and Mahindra Limited wore the crown as it provided discounts ranging from Rs. 40,000 to Rs. 75,000. As per the statement given by Arun Malhotra, Senior Vice-President, sales and customer, Mahindra and Mahindra,”It (the discount) may only be higher by 5%-10%. Moreover, we offer rebates only during the year end.”

      Therefore, to tackle the current scenario, Indian car manufacturers will be looking forward to entice buyers with heavy discounts.