With the festive season around the corner, India’s major automakers are pulling out all the stops to lure customers with lucrative offers. After several quarters of low sales, passenger vehicles have started to see some recovery in the past two quarters, with sales increasing 26% in September. From Tata Motors and Maruti, to luxury carmakers such as Audi and BMW, they are all now banking on the recovering demand and are offering deals and easy financing options ahead of the festive season.
Tata Motors, in collaboration with HDFC Bank, has rolled out finance offers for its passenger vehicle customers. In a bid to make their products more accessible, the company has introduced two new schemes in association with banks - the ‘Gradual Step Up Scheme’ and the ‘TML Flexi Drive’ scheme. Available till the end of November 2020, these offers can be redeemed on the entire New Forever BS VI range of cars and SUVs along with the company’s EV range.
Under the Gradual Step Up Scheme, customers can avail EMI options as low as Rs 799 per lakh per month, depending on the product and variant at an ‘attractive’ interest rate. As per the scheme, the EMI payments gradually increase over a period of 2 years depending on the payment convenience of the buyer.
According to the Flexi Drive scheme, the option to the consumer is to choose any 3 months every year, where they can pay minimum EMI (Rs 789/- per lakh per month, depending on the product and variant) as per their convenience.
Commenting on the roll out of these finance scheme offers, Vivek Srivatsa, Head - Marketing, Passenger Vehicle Business Unit, Tata Motors said, “We hope, that these offers will boost customer morale and make the process of purchasing a car more convenient, thereby allowing them to truly celebrate the festivities with their friends and families.”
India’s largest carmaker Maruti Suzuki is also offering various discounts, varying depending on the model and the state in which a customer is buying the car.
According to industry sources, direct consumer offers such as discounts of up to Rs 10,000-20,000 are being offered. Besides, there are several corporate tie-ups where people can get additional discounts on displaying their ID. There is also a special discount for government employees.
“So, if you are a customer who is lucky enough to be able to club all the discounts, exchange offer and offers from their employer, you can get up to Rs 40,000-60,000 off on the car purchase,” sources add.
Hyundai India is offering benefits of up to Rs 1 lakh based on the model and the variant. Among the models receiving festive benefits are Santro, Elite i20, Grand i10, Grand i10 Nios, Aura and the Elantra. The offer is valid on purchases made between October 1 and October 31, 2020. Buyers can log on to the brand’s online sales platform ‘Click to Buy’ or go to any of the authorised dealerships across the country to avail the offers.
Toyota Kirloskar Motor has also unveiled special offers for salaried individuals. The company is offering flexible finance options, including a three-month EMI holiday. "At Toyota, we always look for ways to enable that big purchase decision with attractive offers for different segments of buyers," TKM Senior Vice-President (Sales and Service) Naveen Soni reportedly said.
The offers have been rolled out across a range of vehicles including the recently launched compact sports utility vehicle, the Urban Cruiser, Soni added in a statement.
Luxury cars
With the auto sector facing a difficult situation in general, coupled with the coronavirus-induced lockdowns, the luxury vehicle segment has been the worst hit with nearly 40% contraction in sales during this calendar year. And now, luxury carmakers are going all out to make the most of the upcoming festive season with lucrative offers to recover lost ground.
Audi has introduced the Festive Celebration Programmes on select products, which may include a lower rate of interest up to five years. For existing customers, Audi is also making re-purchase and upgrades easier by way of special Loyalty and Exchange Programmes. The luxury carmaker is also collaborating with banks to offer low EMIs for customers looking to purchase a pre-owned car.
Balbir Singh Dhillon, Head of Audi India, was quoted by news agency IANS as saying, “We are seeing positive customer sentiment in the luxury car market and anticipate it to become even stronger with the upcoming festive season. We also anticipate the pre-owned car business to further pick up steam during the festive period.”
Mercedes-Benz is offering EMIs starting from Rs 39,999 for the C-Class segment at 7.99% interest and complimentary insurance for the first year amongst others.
German luxury carmaker BMW is offering Easy Start and BMW 360 schemes which offer low EMIs, assured buy-back value and flexible end of term options. BMW India Financial Services is offering interest rate as low as 5.55% on select models. It is also offering Service Inclusive and Service Inclusive Plus to decrease the cost of ownership. Besides, the carmaker is also offering the MINI Countryman Cooper S at 6.99% interest rate with complimentary service package of 5 years or 100,000 km.