No Huge Discounts this Festive Season on Cars: Focus on Meeting the Demand

This year, all those customers who wish to own their favorite car this festive season, might be disappointed because the automobile companies are keeping their focus on meeting the demand for new as they anticipate exceed their supply.

Shashank Srivastava, Senior Executive Director (Marketing & Sales). Maruti Suzuki India, has stated that demand trend looks strong, however, moving forward sales depends on how production pans out against the underlying demand as well as chip shortage, which has become much better.

The festive season in the nation starts with Onam and it goes on till Diwali, the Festive season is significant for the automobile industry as these last for around two and half months and typically account for 25% of the industry annual sales.

Presently Maruti Suzuki has got pending bookings of around 3,77,500 units, while the number is estimated to be about 7,00,0000 units for the entire industry.

Both the discount level as well as sales promotion is really a function of demand supply gap, hence one can expect that most of the model would not have good schemes or large discounts. However, for few models, where the production is better and the demand is steady or not very strong the companies would be keen in offering certain amount of discount. For Maruti Suzuki models, this time, sales promotion is unlikely, as the company has got huge pending bookings.

Previously, Maruti Suzuki witnessed good discount with regards to new purchases for the year, 2019. We expect the demand for this festive season to surely exceed the 2019 demand. We would still have exchange offers and OEMS would offer schemes for low selling models.

As per the industry experts, consumer might receive discount in the range of Rs. 20,000 to Rs.40,000 depending on the model as well as trim, besides finance schemes as well as exchange bonus benefits. In the year, 2019, discounts on vehicles were averaging around 5% going up to Rs. 1 lakh in few cases.

Tarun Garg, Director (Sales, Marketing & Service), Hyundai Motor India stated, "We would continue to have our focus on matching the supply with demand. With continuously improving the semiconductor supply month after month, our production is presently at the optimum levels. As the demand is presently exceeding supply, our priority during the festive season we would reduce waiting period and expedite the delivery of cars of our customers.