At Rs 35,000 to Rs 1 lakh, December car offers get big
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Updated: Dec 09, 2017, 06.08 PM IST
CHENNAI: If you plan to buy a car, now is probably the best time. For one, most carmakers have announced price hikes in January. For another, the discounts this December — ranging from Rs 35,000 to Rs 1 lakh on different models and brands — are at least 10-15% more than last December. The last month in the year normally sees discounts as carmakers push retail to clean out old stock before the new year. But inventories are higher and the discounts more attractive this year due to a number of factors, including GST and a soft retail sentiment.
In the first week itself, mass market brands like Honda, Tata Motors, Ford, Mahindra & Mahindra, Hyundai and Volkswagen have announced various benefits including free insurance, exchange offers and add-ons apart from actual discounts. In some cases, the discounts now cover models that did not see any discounting through the year (Honda City is a case in point).
Even luxury cars are not immune to this trend with brands like Audi announcing benefits worth Rs 3-8.85 lakh on its range late last week. "Retail sentiment is flattening out," said a marketing official at a carmaker. "The increase in discounts is a reflection of that."
Auto industry sources say GST has had an impact on the purchase sentiment in motown. "December has always been a slow month and we've always had to push sales with discounts," said another MNC car marketer. "But this year, GST held up a lot of money, which has further hit sentiments." Inventory levels are also up compared to last year, partly because December 2016 saw wholesales being severely curtailed due to demonetisation.
Traditionally, a double bill of December discounts and January price hike have helped carmakers clear their year-end inventory. This year, too, a host of carmakers have announced their decision to hike prices. Toyota was the first to announce a 3% price hike in January, M&M will take a 1.5-3% increase, Ford 1-3% and Honda 1-2%. Others like Mercedes-Benz India and Tata Motors are "evaluating" their options.
In the first week itself, mass market brands like Honda, Tata Motors, Ford, Mahindra & Mahindra, Hyundai and Volkswagen have announced various benefits including free insurance, exchange offers and add-ons apart from actual discounts. In some cases, the discounts now cover models that did not see any discounting through the year (Honda City is a case in point).
Even luxury cars are not immune to this trend with brands like Audi announcing benefits worth Rs 3-8.85 lakh on its range late last week. "Retail sentiment is flattening out," said a marketing official at a carmaker. "The increase in discounts is a reflection of that."
Auto industry sources say GST has had an impact on the purchase sentiment in motown. "December has always been a slow month and we've always had to push sales with discounts," said another MNC car marketer. "But this year, GST held up a lot of money, which has further hit sentiments." Inventory levels are also up compared to last year, partly because December 2016 saw wholesales being severely curtailed due to demonetisation.
Traditionally, a double bill of December discounts and January price hike have helped carmakers clear their year-end inventory. This year, too, a host of carmakers have announced their decision to hike prices. Toyota was the first to announce a 3% price hike in January, M&M will take a 1.5-3% increase, Ford 1-3% and Honda 1-2%. Others like Mercedes-Benz India and Tata Motors are "evaluating" their options.
(This article was originally published in The Times of India)
