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It’s raining discounts for car buyers this monsoon
MUMBAI: Car buyers in India could not have asked for more. Every manufacturer is doling out offers and discounts this time of the year when buyers traditionally
MUMBAI: Car buyers in India could not have asked for more. Every manufacturer is doling out offers and discounts this time of the year when buyers traditionally put off purchases because of rain and shraadh (a period when Hindus pay homage to ancestors, and considered inauspicious for big-bang purchases).
All companies have something or the other to lure buyers, indicating weakness in demand. Car sales fell 5.18% in June, the second straight decline, according to the Society of Indian Automobile Manufacturers.
While offers are not unusual around this time of the year, discounts this July are higher than previous year, according to dealers of various auto companies.
“There’s no buoyancy in the market and demand is being driven by new models,” said RS Kalsi, executive director, sales and marketing, Maruti Suzuki India. He attributed it to weak rural sales.
With the exception of four models—Vitara Brezza, Baleno, Ciaz and S-Cross — Maruti is offering benefits, including exchange and consumer offers across its line-up, ranging from ₹20,000 to ₹70,000.
Its arch-rival, Hyundai Motor India, too, is pulling out all stops to woo buyers. The firm is offering ₹10,000-1.5 lakh in benefits.
“Consumer offers are the order of the day,” said Rakesh Srivastava, senior vice-president, Hyundai Motor India.
SUV market leader Mahindra and Mahindra Ltd, which has lately seen its dominance in the segment challenged by newcomers, is offering discounts ranging from ₹10,000 to ₹55,000 on most models, except the XUV500. New models, including Nuvo Sport, TUV300 and KUV100, are also on discount. The offers on Mahindra models have gone up by 5% to 10% from a year ago, a dealer said.
Meanwhile, Tata Motors Ltd, which has been riding on the success of its Tiago hatchback, has consumer benefit schemes on all models — from ₹35,000 to ₹65,000.
However, SN Burman, vice-president, sales, Tata Motors, said the offers have come down from last year.
Other manufacturers, such as Ford India, General Motors India, Honda Cars and Renault India, are also offering benefits on sedans and compact cars.
“July is typically a weak month for car sales, but this time the demand has also been hit because of high interest rates and a lower growth in disposable income,” said Mahantesh Sabarad, deputy head of research at SBI Cap Securities.
