The slowdown in the Indian automotive market has taken an unexpected toll on car companies. While discounts and freebies have been doled out in the past few years to get rid of the old stock, in a radical move, the manufacturers are using the same tactic to sell even the most recently launched cars.
In fact, within days of their unveiling, cars have begun to sport discount tags. This, of course, translates into good deals for customers as they can snap up the latest models at a great bargains.
Nissan's new sedan, Sunny, was introduced just four months ago, but now comes with a discount package worth Rs 52,000. Another sedan, Ford Fiesta, which was launched in July, has also hit a rough sales patch and is offering a Rs 75,000 discount.
Small cars are no exception. Japanese carmaker Toyota is wooing customers for its new hatchback, Etios Liva, by offering selective discount options of up to Rs 40,000 on the petrol variant. Hyundai's much-touted hatchback, Eon, which made its global debut on 13 October and is pitted against the world's highest sold car, Maruti Alto, is now available at a discount of up to Rs 20,000 in select regions.
In fact, within days of their unveiling, cars have begun to sport discount tags. This, of course, translates into good deals for customers as they can snap up the latest models at a great bargains.
Nissan's new sedan, Sunny, was introduced just four months ago, but now comes with a discount package worth Rs 52,000. Another sedan, Ford Fiesta, which was launched in July, has also hit a rough sales patch and is offering a Rs 75,000 discount.
Small cars are no exception. Japanese carmaker Toyota is wooing customers for its new hatchback, Etios Liva, by offering selective discount options of up to Rs 40,000 on the petrol variant. Hyundai's much-touted hatchback, Eon, which made its global debut on 13 October and is pitted against the world's highest sold car, Maruti Alto, is now available at a discount of up to Rs 20,000 in select regions.
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Experts say this is the first time that new launches have failed to move the Indian market, compared with the past, when such cars enjoyed huge customer confidence and resulted in a sale surge for months. Despite a dozen new cars being launched during the festive season, the market posted the decade's worst performance in October as sales dipped 24% to 1.38 lakh units compared with the same period last year.
Companies blame this low consumer sentiment on high fuel price and interest rates. People are postponing their car purchases and this has slowed down the sales even for new vehicles.
This year, there were just a handful of new cars that managed to attract customers in hordes. Maruti's new Swift and Hyundai Verna were among such successful launches and continue to have long waiting periods. "We were lucky with Swift. The car sales have been steadfast in the tough market condition. It's getting increasingly difficult to propel sales as even new cars don't guarantee success in the country," says a senior executive of Maruti.
Mahindra's XUV 500 is another vehicle that has witnessed a rare, successful new launch, attracting a phenomenal rush of customers in the first week itself.
Earlier, the launch of new cars was a potent strategy that companies used to outshine their peers in a slowing market, but it doesn't seem to be working any longer. "A launch may not do well in the current market as customers are wary about the economic uncertainty as well as the swelling cost of car ownership. The wider choice in models, along with cut-throat competition in prices and features, has forced some of these new cars out of contention," says Abdul Majeed, leader, automotive practice, PricewaterhouseCoopers India.
Ford India, after the splendid success of its Figo hatchback, of which over a lakh units have been sold since its launch in March 2010, has failed to emulate this success with its new Fiesta sedan.
Companies blame this low consumer sentiment on high fuel price and interest rates. People are postponing their car purchases and this has slowed down the sales even for new vehicles.
This year, there were just a handful of new cars that managed to attract customers in hordes. Maruti's new Swift and Hyundai Verna were among such successful launches and continue to have long waiting periods. "We were lucky with Swift. The car sales have been steadfast in the tough market condition. It's getting increasingly difficult to propel sales as even new cars don't guarantee success in the country," says a senior executive of Maruti.
Mahindra's XUV 500 is another vehicle that has witnessed a rare, successful new launch, attracting a phenomenal rush of customers in the first week itself.
Earlier, the launch of new cars was a potent strategy that companies used to outshine their peers in a slowing market, but it doesn't seem to be working any longer. "A launch may not do well in the current market as customers are wary about the economic uncertainty as well as the swelling cost of car ownership. The wider choice in models, along with cut-throat competition in prices and features, has forced some of these new cars out of contention," says Abdul Majeed, leader, automotive practice, PricewaterhouseCoopers India.
Ford India, after the splendid success of its Figo hatchback, of which over a lakh units have been sold since its launch in March 2010, has failed to emulate this success with its new Fiesta sedan.
(Source-: economictimes.com)