INDIA: Automakers look to festival discounts to counter sluggish demand

By Graeme Roberts | 10 September 2012

Automakers in India are taking advantage of the annual festive season to respond to sluggish demand so far this year by offering discounts and incentives.

Tata Motors is offering discounts between INR10,000 (US$181) and INR50,000 depending on the model. Honda is offering insurance deals with its Brio, City, Civic and Accord models.

Ford is providing accessories worth INR52,000 with its Endeavour model, the Economic Times reported. Maruti Suzuki is also offering discounts ranging between INR30,000 and INR35,000 off the Alto, WagonR and Estilo models in the form of free accessories, cash vouchers or a combination of both.

"Festive season is always very important for us. We are offering gift vouchers and loyalty exchange bonus to our customers. We started these offers last month coinciding with Onam in Kerala and we enjoyed a very good response," Ford India marketing chief Anurag Mehrotra said.

"If any customer comes to buy a new vehicle from us by exchanging his old Ford car we are giving a loyalty bonus of up to INR20,000," Mehrotra added.

The company is also providing free insurance, along with other benefits, of up to INR28,000 to Figo buyers, Mehrotra said.

Mercedes-Benz India's festival campaign, which began on 1 September, will last until 15 October.