It's Raining Car Discounts as Festival Season Begins

Festive discounts on mass-market passenger vehicles (PV) continued to remain high in August, ranging between ₹40,000 to over ₹1 lakh, as carmakers scramble to liquidate inventory ahead of the upcoming launches and avoid heavy discounting during the festive season.

- ANJALI SINGH

With Rakshabandhan and Ganesh Chaturthi falling during the month, the discounts are almost at a similar level as compared to last year.

In 2024, carmakers had rolled out steep incentives to clear older stock, with average cash discounts and exchange bonuses in the ₹60,000-₹1 lakh range on slow-moving models. This year, while the quantum remains high, the spread has widened to popular mass-market hatchbacks and sedans, with offers ranging between ₹40,000-₹80,000, while select SUVs and multi-purpose vehicles (MPVs) carry benefits exceeding ₹1 lakh, especially for older models still in stock.

Nearly one-fourth of the annual car sales happen during the festival months in India, and original equipment manufacturers (OEMs) typically raise production to meet demand. Discounts to lure customers at the onset of the festivals is a sign of relatively tepid demand sentiment. PV retail sales declined marginally year-on-year in July.

Dealers say higher discounts on premium mass-market models are aimed at countering rising EMI costs and clearing units ahead of upcoming festival launches.