For those consumers who have been thinking of buying a new car, but the ever growing interest rates and high fuel prices are putting them off the idea, auto manufacturers in India have begun devising marketing strategies involving larges discounts and even freebies.
Consumers are known to have a difficult time passing up a special discount and especially a freebie and with this in mind, auto manufacturers have decided to try to attract more customers and increase chance visits in the showrooms by offering a large number of freebies and discounts which will be attractive to consumers.
The marketing tactics used by the different companies vary from cash incentives and discounts to lower insurance deals or exclusive bonuses. Companies like Maruti Suzuki, Volkswagen, Toyota, Honda, Fiat and Hyundai, are all getting in on the action with deals that simply cannot be passed up.
Those watching the industry trends are saying that these deals could begin to get even better as the festive months draw nearer. Festivals such as Ganesh Chaturthi or Onam were expected to bring prices even lower, but the discounts were apparently not big enough, as the results were not as expected and the dealerships still suffered from negative sales numbers.
Auto manufacturers in India have been struggling with low sales numbers since last year, and in July this year, sales fell again by 16 percent, followed by another 10 percent drop in August.
Auto dealerships are feeling the pressure to make enough sales but the ever growing petrol prices and sky high interest and insurance rates are not exactly helping. Consumers have been unwilling to purchase new vehicles at this time, rather preferring to stick with their older cars a bit longer, or trade them in for newer second hand models.
It will certainly take some considerable effort on the part of the dealerships, if they wish to remain relevant and sell more vehicles during the festive months. The festive season this year is expected to be tougher than during any of the previous years, which is why the dealerships are expected to bring out some attractive discounts and freebies.
Volkswagen has started a new marketing scheme for its Polo Hatchback and its Vento sedan, offering special features at no additional cost. These features include things like navigation systems, leather seat covers, and rear parking distance control.
How far the discounts will go depends on what the companies in question have set up as targets. The auto manufacturer, Honda, has already significantly lowered the prices of its City sedan and Jazz hatchback, to the point that it is unlikely to be able to off any additional discounts, at least not any very significant ones.
City models especially are being highly discounted in order to attract new customers. The companies without many diesel models will suffer, as the consumer interest is turning towards diesel engines, to avoid the expensive petrol prices. The discounts by auto manufacturers this year were already up by 22 percent, compared with 2010.