In wake of poor festive season demand, carmakers consider bigger discounts

After not-so-impressive October sales, carmakers in India are considering bigger discounts on vehicles in order to make the most of the Diwali season.

With fuel prices, insurance costs, interest rates going up, carmakers have seen vehicle sales remain almost flat during September and October despite the festive season.

According to a Times of India report, with a heavy inventory at showrooms, companies are looking to clear excess stocks by making the deals better in favour of customers.

Country's largest passenger vehicle maker Maruti Suzuki saw an almost flat growth of 0.6 per cent in sales to dealerships in October, identical to the growth witnessed in September. Maruti Suzuki reported domestic sales of 135,948 units in passenger vehicles in October.

Hyundai, helped by the launch of the new Santro in October, sold a record 52,001 cars in the domestic market last month, up 5 per cent from over a year-ago. The third-largest player, Mahindra & Mahindra, sold 24,066 units in October, growing less than 3 per cent compared to last year.

Home-grown Tata Motors managed its double-digit pace of growth in October as well. It sold 18,290 units in the domestic market, growing 11 per cent over last year.