It Is The Best Time To Seize The Day

If you are looking for your set of dream wheels, this is your best opportunity

- Anagh Pal

The economic slowdown has made for some scary headlines in the last few months. Among those, slowdown in car sales is the most talked about, since it forms over seven per cent of the country’s GDP.

Several factors have led to this slowdown, increase in cost of acquisition being a major reason. Shashank Srivastava, Executive Director (marketing and sales), Maruti Suzuki India elaborates, this is mainly due to the changes in safety norms, conforming to which has led to a price increase of cars. The insurance charges and road taxes and registrations have also gone up. Uncertainties regarding the B-IV and B-VI emission norms have also led to a slowdown in car sales.

“Buyers are postponing their purchase decision due to weak market sentiments and the ongoing shift to BS-VI emission norms. We expect sales to pick up next year as BS-VI norms are implemented across the country from April 1, 2020 and liquidity scenario improves,” says Charles Frump, MD, Volvo Car India. While sales picked up in October,

(Maruti Suzuki India recorded the highest deliveries ever during that period), it has again dipped in the month of November.

“Also, people tend to avoid buying cars in December since a month’s wait will reflect the vehicle to be registered in 2020, fetching a better resale value,” says Mohan Himatsingka, MD, Maurya Motors (dealership, Tata Motors) and former President- FDA ( Federation of Automobiles Dealer’s Association).

Naturally, carmakers have been providing incentives to customers to push sales. First, they are offering discounts to bring down the cost of acquisition and we can expect such discounts to continue in December. “These discounts range from seven to nine per cent of the value of the car. Plus they are offering free gifts, surprise gifts and other incentives to lure the customer,” Himatsingka further adds.