As the year-end approaches, auto companies are luring customers with cash discounts, free insurances and lucky draw schemes to clear up their current stockpile.
India's largest passenger car company, Maruti Suzuki India Limited (MSIL) is offering 'savings' ranging from Rs 20,000 (for Alto K10) to Rs 60,000 (for Estillo and A-star) on purchase in December. In all, it is offering varied discounts on nine of its models, starting from base level Alto to its sedan SX4. Apart from that the company is also offering exchange bonus up to Rs 25,000 on the models.
The same offers come with December purchase of Hyundai cars too, as the company is offering schemes like free insurance and cash discounts on its popular small cars - Santro Xing and the new i10. Buyers can save up to Rs 33,000 on Santro Xing, Rs 40,000 on the new i10 and Rs 45,000 for Verna. Similar schemes are running for Sonata, i20 and Accent models.
| December Bonanza|
- Maruti Suzuki India Limited is offering 'savings' ranging from Rs 20K (Alto K10) to Rs 60K (Estillo & Astar) on purchases in Dec
- Discounts also on 9 of its models, starting from base level Alto to its sedan SX4
- Hyundai too, has schemes like free insurance and cash discounts on its popular small cars - Santro Xing and new i10
- Buyers can save up to Rs 33,000 on Santro Xing, Rs 40,000 on the new i10 and Rs 45,000 for Verna
- Cheap car loans by Ford at only eight per cent for Ford Endeavour and Ford Figo and discount up to Rs 71,000 for Ford Fiesta
- GM has also reduced prices of Chevy Spark and buyers can save about Rs 51K on a Spark and upto Rs 21k on Chevrolet Beat
"This is nothing new. Most of the auto companies give discounts on car purchase in December as buyers avoid buying cars in December as the models turn one-year-old and that diminishes its resale value," as executive of Rana Motors, distributor of MSIL, said.
"Another reason for discounts is that a host of new models would come next year. So, auto companies don't want to keep stock of old models. As the sales were good and dealers have achieved their sales target, discounts don't hurt margins," he added.
Maruti and Hyundai are not the only companies to offer discounts. General Motors (GM) has reduced prices of Chevy Spark and buyers can save up to Rs 51,000 on a Spark and upto Rs 21,000 on Chevrolet Beat. Tata Motors, which is already offering a number of schemes for its popular car Nano, is also offering lucky draw for its multiutility vehicles (MUV) where buyers get a chance to win a free car and gift cheques upto Rs 1 lakh with every purchase.
Ford India is offering cheap car loans at only eight per cent for Ford Endeavour and Ford Figo and discount up to Rs 71,000 for Ford Fiesta. Even Fiat India is offering discounts worth Rs 55,000 on purchasing Linea or Grand Punto.
The current offers are very lucrative especially considering that most of these companies are mulling hike in the prices of their cars by two to four per cent in the near future.
Hyundai, MSIL, General Motors, Volkswagen has already announced to increase price of their models from January onwards citing high input cost. Meanwhile, Tata Motors is offering one car free every day through a lucky draw to buyers in bid to push sales in December.Courtesy: Mail Today