Passenger vehicle discounts peak at Rs 3.7L

This comes on the back of muted buying sentiment in the PV market, which saw a 14 per cent drop in retail sales following the festival month of October.

In response, dealers and original equipment manufacturers (OEMs) are offering substantial discounts to reduce excess inventory, which is reportedly at a high of around 65 days. This indicates a slowdown in vehicle sales, prompting a need for aggressive promotions to clear stock. 

Surprisingly, discounts are as high as Rs 3.7 lakh in December. Automakers have announced a price hike for January 2025, which typically should advance the buying decisions of consumers. Yet, significant discounts are being offered as Indian car sales saw a sharp 14 per cent year-on-year decline in November 2024, despite the ongoing wedding season.

In contrast, sales post-festive period last year (October November) had grown by 2.6 per cent, with discounts ranging between Rs 2 lakh and Rs 2.5 lakh. According to Fada President C S Vigneshwar, the inventory days currently stand at 65 68 days, with unsold stock totalling 650,000 units three times the advised levels.  

Discounts offered to consumers are at an all-time high,  Vigneshwar said.  Buyers are also delaying decisions to take advantage of December discounts. While these offers attract buyers, they are unsustainable for manufacturers and dealers in the long run.  

Tata Motors is offering discounts of up to Rs 3.7 lakh on its 2023 pre-facelift Safari and Harrier models. 

Additionally, the Altroz Petrol Racer variant has discounts worth Rs 75,000, while other selected variants of the Altroz Petrol, Diesel, and CNG models offer savings of up to Rs 55,000. Similarly, Mahindra's Thar 4WD Petrol and Diesel - Earth Edition models are seeing discounts of up to Rs 3.06 lakh, including a Rs 2.75 lakh discount and corporate benefits. Other models, like the Thar 2WD Petrol LX P AT BS6.2, are available with discounts worth Rs 1.31 lakh, while the Scorpio Classic S comes with savings of Rs 1.45 lakh.

 Buyers of the XUV300 W8 DS can avail of up to Rs 1.79 lakh in benefits, including Rs 1.25 lakh in cash discounts. Similarly, the Bolero Neo N10 and N10 Opt variants come with discounts of Rs 1.49 lakh, featuring cash benefits and exchange offers. Toyota's Fortuner Legender provides benefits of Rs 2.25 lakh, including Rs 75,000 in cash and loyalty bonuses, while the Innova Crysta offers a Rs 1.5 lakh cash discount. Maruti Suzuki is providing discounts of up to Rs 1.5 lakh on the Jimny Alpha and benefits worth Rs 1.03 lakh on the Grand Vitara Alpha, which include a Dominion Kit valued at Rs 52,699. Discounts of Rs 80,000 are also available on the XL6 Zeta and Ciaz Alpha models. Kia is offering benefits such as a Rs 40,000 exchange bonus and a Rs 15,000 corporate discount on the Seltos. The Carens comes with a corporate discount of Rs 15,000, while the Sonet offers corporate benefits of up to Rs 15,000.

 -- Anjali Singha/Business Standard