Amid the uncertain growth in automobile sector, car makers are offering large discounts in order to lure the Indian buyers. With this move, companies are trying to clear their inventory pile-ups, which they stocked over the past few months due the low demand of cars. The reason cited for low demand was increase in petrol prices and high interest rates, which have majorly contributed to the slump in the Indian car market.
Leading auto makers of the Indian auto market are offering huge discounts through their various schemes. India's most favoured car company, Maruti Suzuki is giving away cash discounts up to Rs. 42000 across its different models. In addition, the company is also offering exchange bonus of Rs. 20000 in order to attract customers in August. It must be noted that its best selling models like Swift and DZire does not have any discounts due to their stable demand. Commenting on it a Maruti Suzuki dealer said "There is a waiting period ever since the two cars were launched. We are pushing for other models through various offers and discount as sales have slowed down this month. We expect to continue with these offers."
Meanwhile, Maruti Suzuki's closest rival Hyundai is also offering discount for its entry level and mid-sized cars. Depending on the models, the company is giving away cash discounts up to Rs. 40000. Furthermore, loyalty and exchange bonus plans are also available on selected models. On its entry level car Eon, a discount of Rs. 22000 is available while a huge discount of Rs. 40000 is offered on the i10 model. Japanese car maker Honda is also giving away numerous leverage on selected models. On this initiative, the company official said, “We are offering insurance at Rs. 1 on middle grades of Honda City and the manual transmission of Brio.”
Following the bandwagon, Volkswagen is also offering discounts on its premium saloon Jetta. Its petrol and diesel variants are given at a free first years insurance. However, the discount price may depend on the type of variant that is selected by buyers. Moreover, an additional exchange bonus of Rs. 20000 is offered, if one wishes to exchange his old car. It must be noted that these offers are only valid on Jetta Comfortline variant.
Apart from these companies, the key players in the luxury car segment have also faced the brunt of the recent slowdown. Companies like Audi, BMW and Mercedes-Benz are giving away lucrative schemes in order lift their sales. These car makers are offering cheaper finance rates and additional discount for customers. German car maker Audi is offering its flagship Sports Utility Vehicle (SUV) Q3 at a substantial discount of Rs. 3.5 lakh, though this offer is only available on the diesel variant. As far as BMW is concerned, its X1 model is offered with a cash discount of Rs. 2.5 lakh. With the launch of new Mercedes-Benz E-Class, the company dealers are trying to clear the old stock of this model, which is now offered at a price cut up to Rs. 7 lakh.