India automobile market has proved to be one of the most productive arenas for car makers from around the world. The high-potential car market is currently flooded with cars and schemes from automotive companies to push their product. There has been discount of up to 20 percent on new car models that expose the crawling demand of cars and effect of rising inventory with distributors. As a consequence of diminishing demand of cars, plenty of options have opened up for buyers.
Most of the petrol-engine car prices have been reduced as the festive period failed to attain projected sales. Honda India was first to come up with a lucrative offer, giving Rs. 1.7 lacs waiver on its hatchback Honda Jazz. Among other car models that are currently offered at heavily slashed prices are Fiat Punto, Chevrolet Spark and Hyundai Accent. Maruti Suzuki also offered rebate of Rs. 50,000 on Alto, WagonR and Estilo for maintaining its sales trend.
Unaffected by the feeble car industry, leading car companies in India such as Maruti Suzuki India Limited and Hyundai Motor India Limited revised pricing of the showroom car models. Price of a brand-new Maruti Estilo in flagship Maruti dealerships in India has been slashed, costing around Rs. 2.65 lacs (excluding taxes). Besides Maruti, other automakers are also convincing Indian audience by slashing ex-showroom prices. The automakers have collaborated with financing agencies and banks in order to push their inventory with cheaper loans. Skoda Auto India and Honda Siel Cars India Limited are financing cars for the buyers at flat 9.99 percent and 9 percent interest rate respectively, which is significantly low in comparison to current market rate of 14 percent.
After experiencing one of the most lacklustre festive seasons, car dealers are offering schemes and discounts to keep the ball rolling for recovery. Car dealers are backed by automakers offering significantly high levels of incentives for attaining their sales target. In addition to this, car makers are also limiting inventory and production of cars.
However, discounting of price is not new to the Indian automobile industry as it has been the most ideal solution to counter rise in fuel prices since the past five years. Participating in the exercise, manufacturers, dealers and financing agencies are associating with automakers for selling new car models.
Due to the adversely affected Indian auto market, global manufactures are being forced to slow down production and introduce consumer-centric products. Illustrious German car maker Volkswagen AG is introducing more small cars to take advantage of the grim circumstances. To revive from the economic slowdown, car manufactures are rolling more diesel-engine cars in India. Indian automotive companies on a discount war has also been following international trend of charging lower interest rates on car finance.
With these, the automobile companies expect to increase their sales and get business back on track.
