December is thought to be the best time to pick the cheapest deals in autoville, think again about it. Monsoon is yet to arrive although it’s already raining discounts in Motown. Truly speaking, May and June discount roster is similar to the December considering the highest discount month in the car market — minus the excise reduction benefits. 

A top car marketer says that compared to last monsoon, this year the rebates are a “lot steeper”. So, this is the right time to buy the car, if you wish so. Discounts are offered between between Rs 5,000 and Rs 1 lakh as discounts to boost buying sentiment before the rainy season by the car companies.  

Maruti’s entire range is now offering benefits ranging from Rs 13,000 on the Omni and M800 to Rs 37,000 on the Estilo. The benefit of WagonR worth Rs 35,000, the Alto Rs 19,000 and the SX4 Rs 25,000 attracts all. Moreover, newly launch A-star is aso cheaper by Rs 24000. 

The only ones that are not on the discount roaster are the just-rolled-out Ritz and long-on-the-wait-list Dzire. That is more alike what was offered in December. Maruti was offering Rs 20,000 off on the Alto and Rs 35,000 off on the Estilo minus the excise rebate, though A-Star was not on the discount tally back then. 

This is part of the company’s monsoon strategy and is geared to push select brands said the Maruti official. As per Mayank Pareek, Suzuki India executive officer, marketing and sales, “Hefty price discounts on one particular car model can help give focus on that model and increase sales for a brief period of time.” 

Not only Maruti offers these sweets. Many more companies such as General Motors, Ford and Tata Motors  are all offering discounts varying from Rs 10,000 to a lakh. Hyundai offers an exchange offer, which lets you upgrade to a bigger Hyundai car without any increase in the EMI. Rs 10,000-20,000 off on the Indica and Indigo range and Rs 15,000 discount on the Safari in addition to a gift scheme are offered by Tata Motors. Rs 55,000 rebate on the Chevy Spark is offered by GM. 

“The rebate rush this time round is much bigger than last rainy season” says Auto experts. Rajiv Dube, president-passenger car division, Tata Motors, said that, “Monsoon always sees some discounting but this time the cuts are steeper”. 

One of the reasons for such a high discounts this year is the possibility of an excise increase in this year’s budget. Car makers step on the marketing gas before the onset of traditionally sluggish monsoon months due to the improved customer sentiment due to better credit offtake. Promotional schemes have now become de rigueur, so customers demand rebates on new models as well, says Car marketers. “Consumers are always looking at some kind of incentive to purchase cars and nowadays they expect the same on newer car models also. But it’s not just discounts but the entire package which attracts a customer. The package includes post sales services such as free car servicing and vehicle checking camps etc at regular intervals,” said Ankush Arora, V-P, sales and marketing, GM India.

There are the benefits for sure on offer but all are not cash discounts. Corporate benefits, free insurance, exchange programmes, loyalty bonuses, free accessories, warranty extension and gift schemes are all included in it. The discount rush is fuelled by multiple factors, says the auto industry official. 

Mr. Pareek, Maruti said that, “Car discounts are driven by many factors including market situation and competitor activities”. “They may not bring a totally new buyer to the car showroom but can certainly prepone demand by influencing the undecided customer.”

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Posted by Naresh Koshti on 13 June, 2009 4:46:50 PM IST #