Auto makers roll out lucrative offers to combat slowdown

As we are aware of the slowdown in the Indian auto market, the automakers are driven to give out huge discounts and offers to spice up the market. They are hoping to increase the footfall in their respective sales outlets and gear up the sales momentum after the sales growth has become as low as 1.6% in June this year. With Honda India taking this major step towards increasing the sales by offering cash discounts and free insurance coverage for a limited period of time on some of its hatchbacks, it has offered an astounding deal of Rs 1.75 lakh limited-period waiver on its not-a-major-hit hatchback Honda Jazz. Maruti Suzuki India is no less by offering over Rs 50,000 cash discount on few of its high-selling hatchbacks - Maruti Alto, Maruti Wagon R and Maruti Estilo, which put together, brings in half of its sales.

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According to Maruti India’s chief General Manager, Mr Shashank Srivastava, they are only trying to make the best of the situation by offering discounts on their high selling models to balance the state of affairs as the overall sales in the month of June this year has hit the rock bottom. After having witnessed a 30% sales growth after 26% in the fiscal 2009-2010, the Indian auto market had a steady downhill and more so with the increase in fuel prices, June this year had seen the lowest sales in last two years. Carmakers in India are leaving no stone unturned to cut the losses and following the International trend of offering car loans at lower interest rates as a part of discounts. With the increase in interest rates after the Central Bank’s prerogative to jack up the interest rates to overcome inflation, this new trend adopted by Indian carmakers has worked like a charm on the customers.

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Big brands like Volkswagen India is offering car loans at mere 6.99 % interest rate on its Volkswagen Vento Petrol Sedan, while Mercedes and Audi are offering a zero-percent interest car loans on Mercedes C Class Sedan and Audi A4 Sedan respectively. Hyundai Motor India is offering up to Rs 45,000 discount on its best-selling hatchbacks Hyundai i10 and Hyundai Santro Xing. Fiat has offered an option to the customers to buy a diesel driven car at the price of its petrol car model and there-by making a profit of Rs 1 lakh in the process.