In a bid to push sales in the upcoming festive season, car makers are planning to deepen discounts. It is to be noted that the last few 
months have not been good for the auto industry as car sales have dropped down drastically. While overall car sales dipped by 10% in August, it dipped by 16% in July. Increase in fuel prices coupled with rising interest rate have kept buyers away from making new purchases. The recent hike in petrol prices followed by RBI’s hike in key rates has added insult to injury for automakers. However, companies are offering high discounts ranging from cash discounts to easy financing rates to attract buyers.
According to experts, the trend may continue with the approaching of the festive season as festivals like Onam and Ganesh Chaturthi did not yield positive results. They feel that in order to clear stocks, dealers will go to any extent. German auto maker Volkswagen has come up with a new “Breeze” scheme for its Vento sedan and Polo hatchback. Under the scheme, it is offering additional features such as navigation system, leather cover seats for free.
On the other hand, automaker Honda has cut the price of it Jazz hatchback and City Sedan by Rs 1.6 lakh and Rs 66,000 respectively. Dealers are extending discounts on City model to attract buyers.
