Carmakers Slash Prices to Boost Sales

Wednesday 07 September 2011, 12:34 PM by

Of late, carmakers have realised that in order to gain something, they need to loose on something. The soaring fuel prices and interest rates have severely affected the sales of cars in India. The trend has forced the carmakers to rethink on the price tag of their vehicles. As a result, they are providing buyers with varied discounts and offers to get their sales figure on track, which has completely lost its direction.

The large gap between the previous and fresh sales performance that has cropped up of late has caused deep concern for the automakers. The car manufacturers are left with no option but to cut down the car prices or bear the risk of loosing on the market share. Even the efforts of the leading carmakers to tackle the menace of diminishing sales have proved to be a fiasco.

Carmakers Slash Prices to Boost Sales | CarTrade.com
Car Makers

Recently, Maruti has launched its bestseller, the new Swift, with 140 changes at around Rs 4.22 lacs, just Rs. 13,000 more than the previous version. Similarly, the recently launched new Honda Jazz was offered with a price difference of up to Rs 1.65 lacs.

Maruti Suzuki, India's leading carmaker, confirms the frantic situation prevailing in the market by deciding to cut down the price of its popular car Alto by Rs. 50,000. Furthermore, Wagon R and Estillo have also faced the axe, having lost the same amount.

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.”

The giant carmaker Honda has been offering highest discounts in the recent times. The Japanese carmaker, in the wake of reduced car sales, which already offered a discount of Rs.66, 000 on Honda City has further reduced the car price by Rs 50,000. The Honda Jazz was the Japanese carmaker's black sheep in the family due to its high price.

India's second largest automobile manufacturer Hyundai Motor India is also offering attractive schemes to charge up the sales. The Korean brand has used the interest rates to attract the customers. It is currently offering 5.99% interest rateon car loans for the Santro Xing and the i10 models. Both these cars are the highest selling models of Hyundai. Moreover, Hyundai is also offering additional benefits such as one year warranty, free insurance along with shielding the consumers against the dangerous fuel price hike.

Thus, the present scenario of the car market seems to be quite beneficial for the customers who are mulling to buy a new car, irrespective of the make manufacturer.

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