As the manufacturers are raising car prices, dealers are offsetting it with attractive discounts. When Maruti hikes its cars price, dealers are giving handsome discounts. The quantum of discounts and free accessories offered by dealers is much more than the hike announced by car manufacturers.
Maruti Suzuki has hiked the prices of all its cars except for UV Grand Vitara. While the company has increased the prices by Rs 2,000, the dealers in New Delhi are offering a cash discount worth Rs 20,000. In case of Zen Estilo, a discount of Rs 25,000 is offered against the hiked prices of up to Rs 1,000. They are also offering free one year insurance.
Dealers are offering a cool Rs 11,000 discounts, a free insurance and cash discount on the purchase of small car Alto, which is costlier by Rs 1,500 after the revised price. Following Maruti dealers, dealers of Tata Motors are also offering around Rs 20,000 cash discounts on the diesel Indica model.
In a move to garner a larger share of car market, General Motors is offering air conditioners equipped Spark (base model) at a special price which is cheaper by Rs 30,000. General Motors has also announced the cash less ownership offer. Its dealers are also offering discounts of Rs 30,000 along with the free maintenance for three years.
Hyundai Motors India has announced several discounts on the purchase of Santro. The company is offering free insurance worth around Rs 10,000 for the one year.
Hyundai is also offering exchange bonus or loyalty bonus which roughly amounts to Rs 10,000 on used cars. Many other dealers are offering additional discounts for trading in old cars.
As car market becomes increasingly competitive, the pressure rises on dealer to post higher sales volume. They are offering discounts and freebies to attract customers. The competition is highest in the small car market as it constitutes nearly 70 percent of the car sales in India.