Renault hikes car prices, but discounts continue due to low sales
With automakers in India trying everything they can to entice customers back into showrooms, hefty discounts and attractive schemes are now being offered across many segments. Initially only offered on hatchbacks and sedans, automakers have now introduced discounts on SUVs such as the Duster and Terrano. Analysts consider this as the right time to buy a car.
SUVs were at one time in such demand in India that buyers had to contend with extended waiting periods. The extended downturn and severe economic constraints has brought with it a change with a drastic dip in footfalls and piling stocks at company dealerships. This left automakers with no other recourse to clear stocks than to put forth attractive discounts and innovative schemes and freebies in what is termed as a desperate attempt to increase sales.
Car sales reported a meager 3% increase in May this year after nearly 16 months of falling sales. June too reported a growth in sales. However even this¬†marginal¬†growth, and the promise of better days in the future is not enough to take automakers out of the doldrums. The lean monsoon is compounding these problems prompting automakers to announce discounts which will continue for the next four months so as to allow companies to maximize capacity utilization and reduce stocks.
Renault Duster and Nissan Terrano are now added to the list of regular models such as the Maruti Alto, Hyundai i10 and Honda Amaze that come with discounts and benefits while automakers are also introducing free insurance and exchange bonuses to woo customers. These discounts have doubled as compared to last year and range from INR 35,000 to INR 55,000 while Maruti Suzuki is offering discount, free insurance and exchange bonuses amounting to INR 1.17 lakhs on the SX4.
At the same time, Renault India has announced a hike of 1% across their model range of Duster, Scala and Pulse.
via Economic Times