As buyers diss cars, auto companies count on offers
incentives by way of discounts, exchange bonuses, assured gifts to the tune of 5-11% — the highest in five years — in a bid to tempt buyers amid mounting inventory as sales slow, following a record FY24. The offers aren't just on older models launched two to three years ago but even on those that went on sale barely a year ago, depending on fuel type, variants and brands. They cut across all body types — hatchbacks and sedans to SUVs. One car maker, Skoda India, has lowered prices.
Tata Motors is offering consumer benefits of up to ₹1 lakh on the second-generation Nexon compact SUV launched in September 2023. The Honda Elevate midsize SUV, also introduced around the same time, comes with benefits of ₹55,000 for corporate buyers under the Summer Bonanza Offer.
Maruti Suzuki is offering benefits of up to ₹72,000 on the Fronx that went on sale in April 2023 and up to ₹95,000 on the Grand Vitara.
Passenger car sales surged 8% to a record 4.22 million units in FY24 but have moderated since amid the heat wave, a long election season and a high base. Going by current vehicle registration trends on the government's Vahan portal, June growth is expected to be either flat or negative. ET reported June 17 that inventory levels at dealerships across the country were at 55-60 days against the norm of 30 days seen at this time of the year.
Such incentives are typically seen either in December or during the festive season but things are different this fiscal year, said Kunal Behl, vice president, marketing and sales, Honda
