The launch of Hyundai’s latest small car, the Grand i10, has triggered a price war in the compact car segment and led to an increase in the discounts on its main rivals such as Maruti Swift, Toyota Etios Liva, Chevrolet Beat and Ford Figo.
Launched a fortnight ago, the i10 is Rs. 20,000-Rs 75,000 cheaper than some of its competition across petrol and diesel variants. It has notched up 10,000 bookings so far.
“Unlike the Honda Amaze and Ford EcoSport, which had only one direct product to compete with, the Grand competes at the heart of the Indian market where almost half a dozen mass products are present,” said Rakesh Srivastava, senior vice-president sales and marketing, Hyundai Motor India Ltd.
“In this depressed market, it has started a price war in the segment. If we look at the level of discounts of the other products, they have all gone up in the last month,” he said.
Rivals companies however discounted Hyundai’s claims.
They said the increase in discounts was more due to the slowdown in the sector and low consumer sentiments.
“Discounts have been going up due to the slowdown in the economy,” said a senior Maruti official. “In the month of ‘shradh’, considered to be a bad time for purchases, discounts are anyway high. Even the Grand i10 is impacted by this. Their 10,000 bookings is less than a tenth of what we got for the new Swift within a month of its launch in 2011.”
The discount on the largest selling model in this segment, the Swift, has increased from Rs. 20,000 three months back to over Rs. 30,000.
Discounts on the Ritz, Beat and Figo have also risen significantly, while the Etios Liva is up marginally.