Auto Giants Roll Out Festive Deals to Boost Sluggish Sales

As the Indian car market experiences a noticeable slowdown, top automotive brands like Maruti Suzuki, Honda, Mahindra, and luxury players such as Audi and BMW are rolling out hefty discounts to stimulate consumer interest. This festive season, customers can expect savings of up to Rs 12 lakh across a range of models, from budget-friendly vehicles to high-end luxury cars. With industry analysts predicting even steeper discounts post-Diwali, carmakers are racing to clear excess inventories before the year-end.

Luxury and Mid-Range Models Offer Unprecedented Discounts

The discounts this season are notably generous, with the luxury Audi Q8 e-tron seeing a reduction of Rs 10 lakh, while the Kia EV6 is available with savings of up to Rs 12 lakh. In the mid-range segment, popular models like the Suzuki Jimny are being discounted by Rs 2.3 lakh, signaling a rare markdown on this previously sought-after compact SUV.

Even market favorites like the Toyota Innova Hycross and Mahindra Thar have joined the discount spree. The Hycross, which initially gained popularity for its hybrid variant, now carries a discount starting at Rs 1.5 lakh as demand wanes. The three-door version of the Mahindra Thar, overshadowed by the newer five-door model, is also being offered with a Rs 1.5 lakh discount.

Electric Models and Premium SUVs Join the Discount Wave

With a high inventory burden, electric and premium vehicles are not left out of the discount game. Mahindra’s XUV400 electric SUV, which already saw discounts earlier this year, is now offering Rs 3 lakh in savings, adding appeal for those exploring the electric vehicle (EV) segment. Additional premium models, such as the Maruti Grand Vitara, Toyota Fortuner, Jeep Compass, and MG Gloster, feature reductions ranging from Rs 1.1 lakh to Rs 4.9 lakh. In the luxury SUV category, the BMW X5 and Audi A4 provide discounts between Rs 7 lakh to Rs 10 lakh.

Analysts Warn of Deeper Discounts as Inventory Levels Surge

Industry experts expect discounts to grow post-Diwali, as automakers aim to offload their existing stock. According to Jato Dynamics, a prominent automotive research firm, the industry’s inventory currently stands at a significant 80 days—a level considered double the usual standard. “The current demand issues are widespread across both entry-level and luxury segments,” said Ravi Bhatia, President of Jato Dynamics. He emphasized that the slowdown is not limited to specific makes or models, but reflects an overarching dip in consumer interest.

As dealerships brace for year-end inventory clearances, manufacturers like Maruti, Hyundai, Tata Motors, Honda, Volkswagen, Skoda, and Audi have already scaled back production and dealer dispatches. This move is expected to prevent further overstocking as the new model year approaches.

Post-COVID Boom Cools as Buyers Hold Back

After a strong period of demand post-COVID, the automotive market faces a cooling trend as customers become more cautious about big-ticket purchases. The combination of rising interest rates, economic uncertainty, and a shift in buyer priorities is impacting sales across segments, forcing companies to reconsider their sales strategies.

With this wave of festive discounts, carmakers are hopeful that these significant price cuts will rekindle consumer interest and help navigate through this period of stagnation. As Diwali celebrations unfold, buyers may find that it is an opportune moment to make a purchase, especially with the potential for further discounts in the coming months.