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Year-end car discounts turn softer this December

Financial Express Hyderabad

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December 03, 2025

Price resets post-GST 2.0 & leaner unsold inventories have eased pressure on dealers for fresh offers

- AKBAR MERCHANT

CARMAKERS HAVE BEGUN rolling out their customary December offers as the year draws to a close, but the market mood is markedly different from previous years.

December has historically been the month of the deepest bargains, with manufacturers and dealers scrambling to clear the year's stock as customers prefer a fresh new-year badge. This time, however, the discounts are noticeably muted.

The industry’s longstanding clearance ritual has been disrupted by buoyant demand and thinner inventories following the September GST 2.0 price reset.

GST-linked price cuts have effectively done the heavy lifting that December discounts used to. A senior industry executive summed it up as “a large part of the correction that usually plays out in year-end deals has already been absorbed into factory pricing since GST rates came down”.

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