Car companies offer discounts of up to Rs 1 lakh in anticipation of good Diwali sales
Two-wheeler and passenger vehicle volumes are expected to grow at CAGR of about 11% over FY17-19 during the Diwali period.
- Car sales in September itself seen a good pre-Diwali sales of 11.32%
- Expections to see above-average festive demand growth in key rural markets
- Two-wheeler and passenger vehicle volumes at CAGR of about 11%
The biggest season for automobile companies is the Diwali period, where car companies clock in maximum sales in the year. Already car companies are gearing up for the Diwali period this season by offering several discounts to their customers.
Car sales in September itself seen a good pre-Diwali sales of 11.32%. This was due to the growth in utility vehicles and festive season purchases.
Analysts Jinesh Gandhi and Deep Shah of Motilal Oswal said that according to their channel checks they expect to see above-average festive demand growth in key rural markets during this period.
However, it said that sustainability can be impacted by below-average monsoon in key markets of UP (-29%), Bihar (-9%), and Madhya Pradesh (-20%). They estimate two-wheeler and passenger vehicle volumes at CAGR of about 11% over FY17-19.
For instance, Maruti Suzuki dealerships are offering benefits up to Rs 50,000 on the Alto 800, while the Alto K10 AMT is being offered at a discount of Rs 47,000, according to a Financial Express report. The Celerio is also being offered at a discount of Rs 44,000 on manual transmission and Rs 54,000 on the automatic variant.
Some car companies are offering Diwali discounts up to Rs 1 lakh on certain models. Buying sentiment is expected to the rise across industries especially in the run up to Dhanteras, before Diwali, which is considered an auspicious day to make any new purchases.
However, the Maruti Suzuki Vitara Brezza, Dzire, Baleno and Ciaz are not being offered at any significant discounts as the demand of these models are high among customers.
Hyundai, on the other hand, is giving cash discounts as well as exchange offers. The Eon, for instance, is being offered at a discount of Rs 50,000, with Rs 45,000 the cash discount and Rs 5,000 the exchange bonus. The Hyundai Grand i10 is being offered at a discount of Rs 40,000. While the Elite i20 or i20 Active is being offered at a discount of Rs 30,000. The Tucson is being offered with an exchange bonus of Rs 50,000.
Honda Cars is offering discounts of up to Rs 1 lakh. The Honda BR-V is being offered at a discount of Rs 1 lakh. The dealerships are offering other benefits on models such as Brio, Jazz, Amaze and BR-V. The 2017 Honda City and the WR-V are however not being sold with any offers.
The report further said that Tata Motors dealerships too are offering discounts on the models such as the Nano, Bolt and Zest. Cash discounts of Rs 15,000 to Rs 20,000 are being offered on the Nano, Indica and Zest variants.
Mahindra too is offering discounts, the KUV100 is being offered at a discount of Rs 60,000, while TUV300 is being offered at a discount of Rs 35,000.
The dealerships are also being offered at a discount of Rs 45,000 on the Scorpio and Rs 55,000 on the XUV500.