Elevating Sales with Strategic Discounts

The automotive industry has been grappling with several obstacles that have resulted in a decline in sales and a significant increase in inventory levels at dealerships. Factors such as subdued consumer sentiment, postponed purchases, and persistent heavy rainfall have collectively contributed to this challenging landscape. However, stakeholders hope the upcoming festive season will catalyze a much-needed turnaround, particularly in urban and semi-urban areas. Additionally, favorable rainfall patterns in certain regions will likely improve agricultural output, enhance purchasing power in rural areas, and boost sales of cars and jeeps.

According to the Federation of Automobile Dealers Association, the current inventory is a staggering 7.8 lakh vehicles, estimated at ~77,800 crore. Given these challenges, passenger vehicle manufacturers and dealers employ various strategies to attract potential customers. These initiatives include launching new products, reducing waiting periods, and offering enticing deals. As sales continue to decline, discounts ranging from ~20,000 to a few lakhs, depending on the brand and model, are being offered to stimulate consumer interest and facilitate inventory clearance.

To capitalize on the festive season and changing consumer preferences, automakers are focused on introducing feature-rich, fuel-efficient vehicles that cater to diverse needs and budgets. The development of electric and hybrid cars is fast-tracked to address growing environmental concerns and regulatory requirements. By investing in innovation, vehicle manufacturers aim to reinvigorate the market and ensure sustained growth in the long term.

The importance of targeted marketing and enhanced customer experiences cannot be understated in the current context. Dealerships are leveraging data-driven insights and engaging promotional campaigns to reach potential buyers. Strengthening after-sales service networks and offering convenient financing options are other strategies to improve customer satisfaction and bolster sales.

To capitalize on the festive season and stimulate sales, major automotive players such as Maruti Suzuki, Hyundai Motor, Tata Motors, Mahindra & Mahindra, and Honda Cars have introduced a range of enticing offers and discounts. These attractive deals aim to attract potential buyers and clear the sizeable inventory accumulated at dealerships.

Market leader Maruti Suzuki is offering a wide range of discounts across its popular models, including the Swift, Celerio, Brezza, Alto K10, Eeco, Fronx, Baleno, Ignis, and notably, the Jimny, which is seeing one of the highest discounts among Maruti vehicles with offers of up to around ~1 lakh. According to Chandigarh-based dealers, most Maruti models are readily available, except for the Invicto, which has a waiting period of three months.

On the other hand, Hyundai Motor has made all models readily available except for a few Creta variants. Dealers have indicated that discounts on the Hyundai Tucson model vary, ranging from ~20,000 to a substantial ~1.5 lakh. Notably, the maximum discount is being offered for the Tucson model. No discounts are currently available on the popular Creta model.

Tata Motors has launched its ‘Festival of Cars’ campaign, offering exciting deals on cars and SUVs this festive season. Customers can enjoy cumulative benefits of up to ~2.05 lakh, with special offers valid until October 31, 2024, on petrol, diesel, and CNG-powered vehicles. This limited-time promotion underscores Tata Motors’ commitment to providing value and choice to customers during the festive season.

Vivek Srivatsa, Chief Commercial Officer of Tata Passenger Electric Mobility Ltd, says, “As the festive season unfolds, we are delighted to present a spectacular array of enticing offers for our valued customers. With total benefits of up to ~2.05 lakh on internal combustion engine vehicles, this year’s festive celebration includes limited-time price reductions and attractive exchange and cash benefits, making it the perfect moment to embrace the spirit of new beginnings.”

Several leading automotive manufacturers have announced a range of offers and limited edition models to boost sales and attract customers during the festive season. These initiatives aim to give customers more value and choice while enabling companies to manage inventory levels effectively.

Tata. Ev, Tata Motors’ electric vehicle subsidiary, has introduced offers on its popular models, including the Tiago. I, Punch. Ev, and Nexon. Ev. To make electric vehicles more accessible to mainstream buyers, the company has reduced prices by up to ~3 lakh for the Nexon. Ev and up to ~1.2 lakh for the Punch. Ev

The company has also launched a limited Festive Edition of the Rumion SUV, featuring stylish upgrades and the TGA package. Most Toyota models are readily available for purchase, with the exception of the highly sought-after Innova Hycross, which has a waiting period of eight to twelve months. 

Honda Cars India Ltd has launched a multi-media campaign for ‘The Great Honda Fest. to target potential customers’’ Kunal Behl, Vice-President, Marketing and Sales, Honda Cars India Ltd, says, “Catering to the demand across key markets, we have also introduced a special festive price for the ‘S’ variant of Honda Amaze, available both in MT and CVT, to make it more accessible. As part of the Great Honda Fest, the company offers discounts up to ~75,000 on Elevate, up to ~1,14,000 on City, up to ~90,000 on City e: Hev, and up to ~1,12,000 on Amaze.”

Availability of SUVs

While some automakers have a vast inventory, others like Toyota Kirloskar Motor and Mahindra & Mahindra are gearing up to meet the high demand. On the waiting period, Sabari Manohar, Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, says, “Our operational enhancement strategy, including the addition of a third shift, has helped to streamline the supply situation, thus catering to the rising demand. A streamlined supply situation has reduced waiting periods for certain models, especially Urban Cruiser Hyryder.”

JSW Motor India also ensures better availability, reduced waiting periods, and a seamless buying experience for MG customers across India. “The automotive industry is navigating through some challenges, with demand stabilizing, the extended monsoon affecting certain areas of the economy, and the expected seasonal impact of the ‘Shraddha’ ritual period. 

However, the ongoing festive season, coupled with new product launches and attractive offers, is anticipated to bring a slight recovery in sales and renewed momentum in the market,” says Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India.

“We have rolled out special festive financing schemes, exchange bonuses, and discounts on select models, which have generated an encouraging customer response, especially in the EV segment,” Bajwa adds.

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