In a bid to soften the stand of its customers that are reluctant to buy cars at this point of time, car companies, along with their dealership networks are set to offer heavy cash discounts on purchase. In addition, free of cost insurance, exchange bonus and zero interest are among the number of advantages that would come the buyers' way.
As a matter of fact, the primary aspect that has given rise to a completely customer-oriented approach being adopted by companies is buyers' frame of mind that proves to be anti-December. It is because only after a meagre period of one month, the model would get the 2011 tag on it permanently, ultimately making it one-year old.
The resistance has every thing to do with the traditional thinking that is an inseparable part of the resale market. According to the mindset, vehicles lose their value with every passing month or year. Therefore, in order to stay away from the unbidden loss, people are inclined towards purchasing a new car in January instead of December.
As far as the car makers are concerned, they are turning every stone to minimise the seasonal sales drop. It has been observed, that this strategy to lure the customers has surfaced in the past few years, especially when December arrives. On the contrary, almost every manufacturer has mulled upon hiking the ownership cost of its vehicles in the month of January that would see a significant boost in car sales.
It must be noted that the car industry has foreseen a growth of 2-4 per cent in 2011-12 and taking account of the 30 per cent growth last year, car makers have one more reason to bring the offerings into picture.
Car makers and dealers have come together to bring about best deals for the customers. Maruti Suzuki is counting on ‘savings’ worth Rs. 30,000 for Alto Std/Lx and A-Star, Rs. 25,000 for Wagon-R and Rs. 35,000 for Estilo. On an average, it is offering hefty discounts on nine of its models. As a part of the scheme, the company has also decided to give exchange bonus going up to Rs. 25,000.
Hyundai India also joins the league with free insurance, cash discount, zero per cent interest rate loan, exchange bonus et al on offer. Its lately manifested model ‘EON’ has been made available to buyers with free insurance and exchange bonus to the tune of Rs. 10,000.
General Motors Chevrolet Spark is ready to give a Rs. 55,000 cash discount to its customers, along with a free insurance and Rs. 10,000 worth of accessories for Beat. On the other hand, Nissan Micra Petrol will come with a Rs. 50,000 cash discount. “We consider December to be the best month for car sales as we can expect more buyers attracted by alluring offers,” says Trident Hyundai Director Sameer Kumar.
Mandovi Motors Chief General Manager, Sales, Yeshwant Rai said, “Footfalls will increase in the second fortnight of the month. The conversion ratio of the enquiry in December is very high. From a normal conversion ratio of 18-20 per cent in all months, the conversion percentage will be above 40 per cent in December. We expect exchange sales will be 30 per cent higher compared to other months.”
Thus, in view of the advantages that are set to accompany new cars in December 2011, customers will not step back from giving it a shot.
