The Hindu Business Line : Carmakers offer discounts to clear stocks at retail end

New Delhi, Dec. 5 Automobile companies are all set to entice customers by offering them the best deals on cars. Having witnessed the sharpest drop in sales last month and a pile up of inventory at the retail end, companies and dealers are offering high concessions on various models to exhaust their stocks.

Maruti Suzuki, for example, has almost doubled the concession on Wagon R and M-800.

The company increased discount on its Wagon-R to Rs 25,000 plus insurance for December as compared with Rs 12,000 and insurance the previous month. Even on M-800 it is giving a price cut of Rs 4,500 and insurance as compared with Rs 2,000 last month.

On its compact car, Alto, the concession is up to Rs 7,000. Hyundai too announced selling its flagship model Santro at Rs 2.99 lakh. The slowdown in the economy and reduced financing on vehicles by banks have led companies like Hyundai to provide attractive deals even to customers for its newer and best selling models like i10 by offering free accessories worth Rs 5,000 and insurance. US carmaker Ford’s Indian subsidiary has lowered prices of its mid size sedan Fiesta by Rs 91,000.

Dealers say that the discounts offered this month have been tempting as next month the model year will change. “Many of the customers do not want to buy a year end model. Hence to clear the stocks, companies usually offer good deals,” said a dealer.

The strategy of higher cuts is also amid fears that December could be worse. Almost all auto companies posted the sharpest decline in sales in November. Maruti Suzuki saw domestic sales fall by 27 per cent, Hyundai by 23 per cent and Mahindra by 12 per cent on its Logan.

“November has been very dull for all manufacturers. And December being the year end is even worse. So all companies want to liquidate their stocks,” said a Honda car dealer.

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