High interest rates, rising fuel prices and a general slowdown in the economy not to leave out job insecurities have all taken a toll on demand for new vehicles in the Indian auto industry during the past year. Auto sales were well below expectations. Even the auspicious and festive season of Dusshera and Diwali failed to draw customers to showrooms.
Most auto companies are not optimistic of the near future as well and expect this downward trend to continue well into 2013. Though this dismal situation prevailed over the auto industry, it did also see a fair share of new launches which included Maruti Suzuki Ertiga, Renault Duster, Alto 800, Chevrolet Sail U-VA, Honda Brio Automatic, Renault Scala, Nissan Evalia, Mahindra Quanto, SsangYong Rexton, and many more.
To put sluggish sales on track, auto companies are offering reduced prices, starting with Maruti Suzuki Alto 800 which is being offered with Rs.16,000 off its on road prices. Nissan Evalia also comes with a Rs.20,000 discount while Chevy Sail hatchback is being priced Rs.15,000 lower than what it came in with.
As per estimates, discounts on cars range from 13 percent to 18 percent in December 2012 as compared to discounts of 8 percent to 15 percent in December 2011. Some models such as Hyundai i10, WagonR and Tata Indica and Toyota Liva are being offered with discount packages upto Rs.60,000 besides attractive exchange offers. However, despite this, December sales are not as per expectations and even the New Year hold no promises to see this situation improve.