After the heavy rise in fuel and steel prices, most of the car makers decided to absorb the high input cost to lure consumers. But, how long will they absorb these input costs?
In the previous month, looking at the critical car market conditions, the car manufacturers had offered heavy discounts on car prices. Unfortunately, some of them have reduced the amount of discount offered last month.
Hyundai is still continuing with the actual discount offers but Maruti and Tata have cut down their promotional offers. Maruti Zen Estillo had a discount of Rs 26,000 last month which has been brought down to Rs 16,000. Similarly, the discounts on Wagon R, has been brought down from Rs 21,000 to Rs 10,000. Tata also brought down the discount offered on Tata Indigo from Rs 25,000 to Rs 20,000.
Labels: Car-Discounts, Input-Cost
5 Comments:
Market is becoming tough and raw material costs are increasing. With such a challenging market how long will the car makers absorb the high input cost? I don’t think so that these offers will last for more than a month.
I think that steady increase in loan interest and fuel prices have made it difficult for consumers to take a decision on buying a car. That’s the reason why consumers are not approaching car dealers even after heavy discounts. This response from the consumers must have compelled car makers to cut down their discounts offered last month.
With the creeping raw material costs, it has become even more difficult for companies to absorb the persistent increase in input costs. This may be one of the reasons why some companies like Tata and Maruti are reducing their promotional offers.
There are fabulous discounts given by car makers and seeing Maruti giving so many discounts on almost all the cars is really astonishing. This is a nice way to offer discounts to the buyers. So this is really a good chance for the buyers to think and go for it.
I completely agree with what Aradhna, Manu and Amrit say. Car makers in India are really walking the toughest roads. It is really difficult to maintain the growth scale with such high inflation and low interest from the consumer end. These manufacturers are actually afraid of a big hit on their bottom line of production and are awaiting heavy loses. With such conditions how long will they be able to absorb the input costs?
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