Now Indians can afford to buy even high-end luxury automobiles at much reduced prices as sliding demands has forced automakers to increase discount percentage even on cars launched recently.
Indian automobile market leader Maruti Suzuki offered Rs. 16,000 off on its on-road price for its new Alto 800 and Nissan's MPV Evalia, which comes with Rs. 20,000 discount bonanza from its dealers. Also, the Chevy Sail hatchback offers freebies worth Rs. 15,000.
The new launches, refreshes and facelifts auto vehicles across segments have failed to increase sales and cheer the auto car industry in this festive season. However, Alto 800 and Quanto have managed to get some gains along with some utility vehicles.
Mayank Pareek, chief operating officer (marketing & sales) at Maruti Suzuki said, “Retail sales and deliveries are not so enthusiastic this month after some strong demand witnessed during the Diwali season that helped to clear off the inventories,". "Discounts on cars in December are at the all time high and now many diesel cars that had robust demand earlier have also hit the rebate path," he said in a recent media interaction.
According to various car companies, the average discounts on cars range between 13% and 18% in December compared to 8%-15% last year. Despite discount offered up to Rs. 60,000 on popular models such as Maruti WagonR, Hyundai i10, Tata Indica and Toyota Liva. Even then experts expect December to be a low month.
“We are not excepting any turnaround in sales even as freebies and discounts touch their highest point of 2012 as the macro economic conditions have not changed. Inflation and interest rates on auto loans continue to be high that is pushing back customers to buy new cars," Sageraj Bariya Managing Partner at Mumbai-based research firm Equitorials, said. With rising fuel prices, high interest rates and slowing down economic growth are expected to keep consumers sentiment low even in the next year.