Offers in trunk...your next car’s trying to drive towards you
The average incentive in the second quarter of 2024 rose to Rs 31,258 from Rs 24,350 a year earlier, according to data collated by consultancy firm Jato Dynamics. Diesel cars topped the list with offers totalling Rs 66,203 on average, followed by electric (Rs 31,185), petrol (Rs 29,209) and CNG (Rs 19,353).
The industry had seen a surge in sales after the pandemic, driven by pent-up demand, increased preference for personal mobility and low interest rates, allowing manufacturers to raise prices by an average 6.5% during 2022-2023. The latest market trend suggests cooling demand, as well as intensifying competition which may require automakers to reset their strategies, say industry trackers.
As companies balance between preserving margins and maintaining market share, consumers may find themselves in a buyer's market, said Ravi Bhatia, president of Jato Dynamics.
As the auto sector navigates this new landscape, the coming months will be crucial in determining whether this is a temporary adjustment or a long-term market realignment, he added.
The market dynamics required even an automaker like the local unit of Toyota Motor, which is known to enjoy strong pricing power, to reintroduce incentives, with it offering up to Rs 52,895. Car market leader Maruti Suzuki has taken a cautious approach, giving Rs 22,453-26,246 in discounts and other incentives to buyers.
INVENTORY PRESSURE Automakers start inventory stocking for the festive season from August every year. This year, this has started from June itself as
