Car discounts in top gear on muted sales

Inventory buildup prompting aggressive promotions in December

- ANJALI SINGH

The Federation of Automobile Dealers Association (Fada) has said that discounts on passenger vehicles (PVs) have touched unprecedented levels.

This comes on the back of muted buying sentiment in the PV market, which saw a 14 per cent drop in retail sales following the festival month of October. In response, dealers and original equipment manufacturers (OEMs) are offering substantial discounts to reduce excess inventory, which is reportedly at a high of 65 days. This indicates a slowdown in vehicle sales, prompting a need for aggressive promotions to clear stock.

Surprisingly, discounts are as high as ₹3.7 lakh in December.

Automakers have announced a price hike for January 2025, which typically should advance the buying decisions of consumers.