All-time high car inventories, all-time high discounts
With inventories piled up to the ceiling and time running out for its clearing, any prospective car-buyer would almost certainly get an offer of a lifetime, reports Sumant Banerji.autos Updated: Dec 18, 2008 20:35 IST
An industry in slowdown often throws up lucrative offers for its consumers. And when things are as bad as they are with the automobile industry today, the consumer is literally pampered like a king.
With inventories piled up to the ceiling and time running out for its clearing, any prospective car-buyer would almost certainly get an offer of a lifetime. Two excise cuts in less than a year, coupled with rising desperation of car makers and dealers alike to get consumers back to the showrooms, have led to discounts ranging from Rs 30,000 to Rs 85,000.
“In the current market situation of sluggish demand, it is a challenge to reduce inventories. The discounts are the highest ever and are indicative of the bearish sentiment," said Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers.
Despite a slight reduction in auto loan rates in the last few weeks,interest rates are still higher than last year. Even then lower prices more than make up for the higher EMIs.
"December is traditionally a bad month as cutomers stay away from buying a car which will be considered old in just a month's time when the new year kicks in," said S P Shah, President, Federation of Automobile Dealers Association (FADA).