This Is The Right Time To Buy A Car In India

NEW DELHI: It wasn’t too long ago when compact sports utility vehicles were attracting Indian customers by the dozen and were enjoying long waiting periods, but a year-long downturn has changed all that, with these hugely aspirational vehicles now being offered at a discount by desperate car companies trying to push sales.

So, if you are looking to buy a car, this could perhaps be the best time to do so, given the current discounts and freebies.

The rebates are available in not just hatchbacks or sedans, but even in SUVs like the Renault Duster or the Nissan Terrano, which are being offered with insurance freebies and exchange bonuses.

This comes in the backdrop of passenger car sales gaining some respectability, hinting at good times ahead, prompting carmakers to roll out the goodies in the usually lean monsoon months. These freebies are likely to continue for three-four months as companies try to maximise capacity utilisations and cut inventories.

"Discounts are at an historic high and have helped the industry to arrest the decline to some extent. We have seen some positivity in the market for the past two months and the aggression of carmakers to get more customers and increase traffic at the showrooms to help utilise plant capacities to the full," said Rakesh Srivastava, senior vicepresident (marketing & sales), Hyundai Motor India.

Regular models like the Maruti Alto or Hyundai i10 have been coming with discounts,but vehicles like the Duster, Terrano or even the Honda Amaze that didn’t come with any deals until last year, are now being clubbed with offers of free insurance and exchange bonuses.

The county’s largest carmaker Maruti Suzuki India is offering customers the highest discounts since inception and riding on big-bang exchange carnivals through its dealers across the country to attract customers to trade their old cars for new ones.

"It’s perhaps the best time to buy new cars as the slowdown has brought windfall gains to customers. Discounts in June are up by around 30-40% than last year with virtually every model now carrying some freebie," said a senior Maruti Suzuki executive, preferring anonymity. Car sales registered a 3% growth in May this year after a 16-month gap, reinforcing the possibility of a possible turnaround in the festive months ahead.

In absolute terms, the average discounts on most models are in the range of Rs 35,000-Rs 55,000 for the current month which are almost double that of last year, dealer sources say.

"The freebies are not just restricted to older cars, but are available in high potential cars like Maruti DZire, Hyundai Verna and even Mahindra Bolero," said a Delhi-based multiple franchise auto dealer.

Analysts tracking the auto industry say that the trend is likely to continue for the next few months. "Auto industry is going through a tough phase with passenger vehicle sales having taken a knock. While the main triggers are inflation, higher interest rates coupled with negative sentiment of customers, auto makers are offering deep discounts to create some sort of demand," said Abdul Majeed, Partner, PricewaterhouseCoopers.

"In fact, very attractive prices are being offered to customers on almost on all models." Many of the carmakers are also offering discounts in June to make way for newer models that are expected to hit the market around the festive months starting late August.

But going by the sluggish conditions, the quantum of discount makes it an attractive preposition for buyers even as the government has extended the excise benefits on automobiles until December.