The slowdown in the Indian auto industry is what is responsible for the gloomy faces in many a carmakers office. But for you, the car buyer these are actually good times to go out shopping for a car, because there are good deals to be had as carmakers struggle to get cars out of showroom doors.
The sales figures for this season, just released by the Society of Indian Automobile manufacturers (SIAM) show that overall vehicle production has dropped by over 4% to 17,37,548 vehicles in May 2013 compared to 18,11,515 in May 2012. This includes all kinds of vehicles. Looking at passenger cars alone, production is down 10.25% to a total of 5,22,987 vehicles compared to 5,82,703 in the same period last year. Also read: Honda zooms to No.4 spot after amazing Amaze sales
That drop in production is also responsible for a dip in domestic sales as well, which have slowed about 8.5% to 4,09,823 cars in May. However, export numbers, thanks to companies such as Nissan, Ford and Mahindra are looking up. Exports have increased about 7.3% to 90,615 “Made in India” cars in May. Also read: Game changer cars of 2012
Rising fuel prices dampen sentiment
The rise in diesel prices and the fluctuation in petrol prices have put the brakes on sales of diesel cars, which were at their peak last year because of the gap in fuel prices. Last year, the gap between petrol and diesel prices was almost as high as Rs. 30 a litre, but which has now narrowed to just about Rs. 11 a litre. So much so, discount offers have begun to kick in on diesel cars as well – where earlier there were none. Hyundai, Maruti and Chevrolet are all offering discounts on their diesel range of cars too. Also read: Indian car sales – winners and losers of the year
Deals do little to push sales
Maruti is offering a Rs. 20,000 cash discount and Rs. 20,000 exchange bonus on the Ritz diesel and Maruti Ertiga diesel and a whopping Rs. 50,000 off on the new Maruti SX4 diesel. Volkswagen is offering free insurance and up to a Rs. 15,000 discount on the Volkswagen Polo diesel. Hyundai is offering a Rs. 20,000 exchange bonus on the i20 and Verna. Let’s see if these deals pay off in another month’s time.