If the recent trend in the auto industry is studied, the outcome of the poor overall performance does not exactly put the consumers at the receiving end. Rather, the loss of the car makers proves to be a boon for their buyers. The swelling fuel prices and interest rates have had an adverse impact on the sales of cars in India, for a long time. As a result of the negative trend that surrounds the auto industry currently, car makers have been pushed into revising the price tags provided to their vehicles. To counter the menace of slow growth rate and declining sales, the car companies are offering diverse range of schemes and various discounts to its buyers. The bold decision has been put in place to get the sales figure ticking, which has completely stagnated over a period of time.
The widening gap that seems to have surfaced between the earlier and current sales performance has not shown any signs of being bridged. The car manufacturers are facing a tough time as reducing the prices would add fuel to the fire in case the sales figure does not show any positive change. The present situation has worsened so much so that even the biggest names in the auto industry have become mere spectators and dance to the tunes of the degrading trend.
Recently, Maruti has brought in its bestseller, the new Swift, in the market with 140 changes at a throwaway price of around Rs 4.22 lac, just Rs. 13,000 more than the earlier version. Working on the same lines, the recently launched new Honda Jazz has been offered with a price lowered by approximately Rs 1.65 lakhs, compared to its predecessor.
Maruti Suzuki, India's leading car maker, has also laid down its arms against the prevailing situation and thus, decided to cut down the price of its popular car Alto by Rs. 50,000. Moreover, Wagon R and Estilo too have experienced a reduction in their values.
Maruti's Chief General Manager (Marketing), Shashank Srivastava said that “We are just reacting to the market. Retail sales have taken a hit with a huge slump in customer's responses. To maintain our sales tempo, we have maximized the benefits on high selling models like Alto and Wagon R in July as overall sales had turned negative in June.” He also added that “We are just reacting to the market. Retail sales have taken a hit with a huge slump in customer's responses. To maintain our sales tempo, we have maximized the benefits on high selling models like Alto and Wagon R as overall sales had turned negative.”
In the recent times, Honda has also been offering discounts. The Japanese car maker, which is also bearing the brunt on reduced car sales, has already offered a discount of Rs.66, 000 on Honda City.
India's second largest automobile manufacturer Hyundai Motor India is also offering attractive schemes to wake up the sales. It is currently offering 5.99% interest rate on car loans for the Santro Xing and the i10 models.
As a conclusion, the car makers have to watch out for every unforeseen situation that may worsen the existing problem and must continue to adopt steps that would compensate for the loss in some way or the other.
