On the one hand India’s automobile sector is growing fast, on the other hand, dwindling demands of passenger cars make it difficult for carmakers to improve annual performance. At present only six of the 150 different models on offer are selling at their full ex-showroom price. This is the prime reason companies are giving good discount to boost sales in the fiscal end.
It is quite a paradox that companies are coming up new cars in this year and next year but top shots like Maruti, Honda, Hyundai and others are not doing good in their new models. Except Honda City, Maruti Dzire, Hyundai i20 Elite, Ford Ecosport, Skoda Octavia and Volkswagen Jetta, others have to depend on heavy discounts to attract customers. Some companies also give freebies to lure customers. This is of course not for the industry because the raw materials prices are going up from the end of the year, so companies will be forced to hike their prices. Already Honda has increased its car prices by Rs.60,000 and also expect to increase in the coming years.
In the current scenario there is a slump in sales and only three companies are able to draw some profit from the market. Even the largest selling car manufacturer by volume Maruti Suzuki is also feeling the heat. All of its models except Dzire are selling in the showrooms with discount up to 15%.