The Hindu Business Line : Car buyers will have to pay more on select models

Maruti Zen Estilo customers would have to pay Rs 16,000 more for the car in July as compared with what the customers paid the previous month and Wagon R buyers would have to spend Rs 10,000 additionally.

Even customers looking to buy Tata Motors’ models like Indica Dicor and Indigo would be required to pay Rs 5,000 more for the same car, as the discount offer has been brought down to Rs 20,000, from Rs 25,000 last month.

Industry players say that the persistent increase in input costs has prompted companies to reduce their promotional offers.

Beginning this month, Maruti has almost halved its discounts on Wagon R and Zen Estilo. So, the company that was giving a deduction of Rs 26,000 with insurance last month has now cut it to Rs 10,000. Similarly, the discounts on Wagon R, which stood at Rs 21,000 with insurance last month, have now dropped down to Rs 10,000 with insurance.

Hyundai has maintained the same level of offers for Santro. But for its newly launched and popular selling compact hatchback i10 there are no free fuel vouchers like there were last month.

“Market is tough. Our costs are increasing. Last month, we hiked the prices partially. But till when can we absorb the creeping raw material costs?” asks Mr Arvind Saxena, Senior Vice President, Sale and Marketing, Hyundai.

Car dealers say that even discounts have not been able to lure customers. For example, Tata Motors with attractive offers posted 2 per cent drop in sales at 17, 017 units and Maruti witnessed almost stagnant sales at 56,411 units.

“Even after giving discounts, customers are finding it difficult to make purchasing decisions due to steady increase in interest rates and fuel price hike. This could be the reason why companies are offering less attractive schemes,” said a city-based car dealer.

Related Stories:
Hyundai to raise prices
Maruti hikes prices

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