Auto firms see surge in govt staff despite crisis
The festive season may have failed to bring much cheer to carmakers across the country, but arrears to Govt employees due to the pay revision in October has led to a surge in sales in the segment, reports Sumant Banerji.autos Updated: Nov 09, 2008 19:51 IST
The festive season may have failed to bring much cheer to carmakers across the country, but arrears to government employees due to the pay revision in October has led to a surge in sales in the segment. As a result, auto companies have decided to extend the scheme by another month.
Market leader Maruti Suzuki India Ltd (MSIL), Hyundai Motor India Ltd (HMIL) and General Motors were among the companies that had devised special schemes to lure government employees and all have seen a substantial jump in sales from this sector.
"Normally we sell around 4,000 units in a month to government employees but in October due to the pay revision and the extra cash available with them we saw a three fold jump and sold around 12,000 cars," said Mayank Pareek, executive officer, marketing and sales, MSIL.
Hyundai also witnessed a similar trend. The company sells around 1000 units to government employees during a month but last month it sold around 3,000 cars. "We have trebled our sales to government employees and our scheme has been a success," said Arvind Saxena, vice president marketing and sales, HMIL. "This scheme has been extended for this month as we are aware that state government employees are also set to see a pay revision soon"
Under the scheme, Hyundai offers special discounted pricing and attractive finance options and has tied up with Axis Bank, HDFC Bank and State Bank of India for the same. The discounts available range from Rs 10,000 on the i10 to Rs 31,000 on the Verna.
General Motors had also offered a discount of upto Rs 62,000 on its small car Chevrolet Spark and Rs 31,000 on the U-VA besides lower interest rates in conjunction with various state and central banks and the company has also extended the scheme for this month. Though the company did not divulge numbers, Ankush Arora, VP sales and marketing GM India said that consumer interest has perked up from this segment in recent days.