The Hindu Business Line : Car makers offer discounts to woo buyers

New Delhi, Sept. 8 After a sharp drop in domestic car sales growth rate, car makers such as Hyundai and Maruti have begun to offer discounts to revitalise sales to attract consumers who are shelving their purchasing plans due to high inflation and interest rates.

Car makers fear that in the festival season growth may not sustain last year’s momentum.

Single-digit growth

Tata Motors’ President of passenger car business, Mr Rajesh Dube, said recently that he expected sales during the next few months to remain in single digit compared with a double digit growth seen during the first few months of the year.

Similarly, Hyundai Managing Director and CEO, Mr H.S. Lheem, had said last week at an industry event here that he expected growth in domestic car sales to remain at the same level.

Hyundai’s offer

Hyundai Motors India, though, recorded a healthy increase in sales last month with its newly launched model i10, has now announced an offer of a free 24-carat gold coin, MP3 player and insurance cover to those purchasing its cars during the year. In addition, it would also extend the benefit to its existing consumers as well as non-Hyundai car owners through exchange scheme.

The company is offering an exchange bonus of Rs 15,000 on the purchase of Santro and i10; Rs 10,000 on the purchase of Getz, Accent and all variants of Verna. While the same scheme is being offered to non-Hyundai car owners too, the company’s existing customers would be entitled for an additional bonus of Rs 5,000.

Maruti discount

Similarly, beginning this month, Maruti Suzuki too, is offering a discount of Rs 30,000 on SX4 buyers who are existing owners of Maruti cars. For its other models such as Wagon R, it is offering a discount of Rs 11,000 with insurance, Rs 15,000 with insurance on Zen and insurance plus Rs 4,000 on its compact car Alto.

General Motors too, has lowered the price of its popular selling model Spark from July to Rs 2.66 lakh from its earlier price of Rs 2.89 lakh.