As the year comes to an end, automobile manufacturers, in order to sell off the backlog, are offering heavy discounts. 2011 proved to be one of the most difficult in terms of sales. The unexpected rise in demand for diesel cars led to accumulation of unsold petrol models.
Car makers like Maruti Suzuki India Ltd (MSIL), Hyundai, Tata Motors and General Motors are giving discounts, starting from Rs. 20,000 to as high as Rs. 70,000, on cars belonging to different segments. In addition to discounts, companies are also providing free accessories, insurance and exchange bonuses.
Maruti Suzuki, the leading car manufacturer, saw its car sales drop 17 per cent from April to November, this year. To overcome this huge loss, Maruti Suzuki has decided to offer discounts on bookings done prior to 31st of December. Maruti Suzuki will give rebate of Rs. 25,000 on Wagon R, Rs. 35,000 on Estilo and Rs. 30,000 on Alto and A Star hatchbacks.
Concessions for Chevrolet Optra and Chevrolet Aveo UVA will be up to Rs. 56,000 and Rs. 54,000, respectively. Rs.75,000 of discount is being offered by both Ford and Fiat on their models Fiesta and Punto.
As mentioned earlier, companies are also offering other attractive deals apart from cash discounts. Hyundai India and General Motors and Volkswagen are providing free insurance worth some amount. Most automobile manufacturers feel that the discounts offered this year have increased by about 20 to 22 per cent for many models. Thus, it will be interesting to see if cash discounts and other schemes will be able pull in enough buyers to clear the existing stock.
