Companies are offering benefit schemes anywhere in the range of Rs 10,000-1,50,000 to entice buyers
Car manufacturers are making a last-ditch effort to liquidate their stock by offering large discounts before ushering in the new year when they begin to raise prices across products lines.
Companies like Hyundai, Maruti Suzuki, Tata Motors, Volkswagen, Toyota, Honda, General Motors, Ford and Mahindra & Mahindra are offering benefit schemes anywhere in the range of Rs 10,000-1,50,000 to entice buyers.
The offers are also given away on models which have been in the market for less than two months. For instance, Tata Motors, the fourth largest passenger car seller in India, is offering benefits of upto Rs 50,000 on the Manza Club Class, which it launched in mid October. Similarly, offers range from Rs 20,000 on the Nano to Rs 1,50,000 on the multi-seater Aria from Tata Motors under the banner 'Ultimate December Offer'. Sales of the Mumbai-based company dropped nearly 5% in the period April-November this year at 169,792 units.
Tata Motors is not alone to float December offers. Korean brand Hyundai has its own promotional scheme, 'Hyundai December Delight' under which it is offering benefits in the range of Rs 15,000 to Rs 1,20,000.
Hyundai's smallest car Eon is carrying a discount of Rs 30,000 while the Santro and Santa Fe carry a discount of Rs 45,000 and 1,20,000, respectively. Though Hyundai is yet to announce it officially, the company is mulling a raise from January.
US-based car maker General Motors too is giving away discounts on its range through a heavily promoted consumer scheme. Under the 'Chevrolet Blockbuster Mega Benefits' buyers can drive away with the Chevrolet Spark, GM's cheapest car with benefits of upto Rs 40,000.
The American company is planning to raise prices by 1-3% from January on account of increased input prices despite its sales coming under fire. The company saw sales slump to 50,172 units in the period April-October, a fall of 23% as against the same period last year.
Utility vehicle market leader Mahindra & Mahindra, which has posted the maximum jump in growth this year in sales, too is offering discounts on its range. The Xylo, multi-utility vehicle, once a top seller for the company, is being offered with a benefit scheme of Rs 70,000. India's largest selling sports utility vehicle, Scorpio is being given away with a scheme of Rs 50,000.
Maruti Suzuki, India's largest car maker, has said that it would increase prices by up to Rs 20,000 across its range from January 1. Adverse impact of foreign exchange on its cost of manufacturing has led to the decision said senior executives of the company.
Toyota Kirloskar Motor, which is offering discounts on the Innova, Etios and Etios Liva will be effecting a price hike of 1-2% across all models from January 1. The company imports components for the Innova and Fortuner from Thailand, while certain parts for Etios are imported from Japan.
Budget-carrier SpiceJet today said it has raised Rs 126.5 crore through issue of securities to promoter Kalanithi Maran.