The country’s largest manufacturer of cars, Maruti Suzuki India Ltd, has offered steep discounts percolating into total savings of up to Rs 90,000 on cars across segments in the last month of 2018.
As per the documents reviewed by CNBC-TV18, the company is offering up to 80 percent higher savings on car models in December as compared to the previous month. In fact, dealers said the discounts are even higher than the usual year-end trend.
“This time, the company is offering higher discounts than last year…somewhere in the range of Rs 5,000-10,000 for some models. And there are offers on models like Vitara Brezza, something which has not taken place yet,” a dealer in the know of the matter said.
Vitara Brezza, the best-selling sport utility vehicle of the New Delhi-based company, is now being offered at an exchange bonus for the first time since its launch in 2016. An exchange bonus of Rs 25,000 is being offered if the vehicle under exchange is up to 7 years old and at Rs 15,000 otherwise.
Total savings in the current month on some of the most popular cars from Maruti Suzuki’s stable such as Dzire, Baleno and Swift are up to 50 percent more than last month. Total savings include cash discount, exchange bonus and other benefits.
It is important to recall here that automobile manufacturers have had a difficult terrain since the start of September quarter marred by various factors including higher insurance costs, financing cost. As a result, the consumer sentiment has remained dampened and floods in Kerala, an important market for automobiles, have further weakened the sales.
In fact, in a first of such statements, Federation of Automobile Dealers Associations, voiced its concern over the dull festive season and de-growth that the automobile industry is currently staring at.
“With fuel prices starting their downward trend in October end, Diwali season saw a sales uptick, especially in two wheeler but overall, we have seen unusual de-growth during the combined festive period, both in two wheeler and passenger vehicle. Dealer inventory levels in both these segments have risen substantially as a result of this and is a matter of great concern,” the dealer body said.
Total sales of the carmaker fell 0.7 percent on year in November to 153,539 units with passenger vehicle sales decreasing by 0.3 percent to 143,890 units.
First Published: Dec 4, 2018 5:52 PM IST
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