By Akbar Merchant
Carmakers have begun rolling out their customary December offers as the year draws to a close, but the market mood is markedly different from previous years. December has historically been the month of the deepest bargains, with manufacturers and dealers scrambling to clear the year’s stock as customers prefer a fresh new-year badge. This time, however, the discounts are noticeably muted. The industry’s long-standing clearance ritual has been disrupted by buoyant demand and thinner inventories following the September GST 2.0 price reset.
GST-linked price cuts have effectively done the heavy lifting that December discounts used to. A senior industry executive summed it up as “a large part of the correction that usually plays out in year-end deals has already been absorbed into factory pricing since GST rates came down”. With list prices trimmed just a few months ago and retail sentiment running strong through the festive season, carmakers are not under the same pressure to slash prices further. Further, unlike previous years, when in January, all carmakers hike prices, there’s no certainty yet, whether the same would happen this time.
What do inventory levels indicate?
Inventory levels tell the story. Dealers who last December were sitting on stock amounting to well over a month of sales are now operating with far tighter supply. Maruti Suzuki has indicated that its pipeline is down to around 19 days, drastically limiting the scope for steep clearance cuts. Other brands have also reported significantly leaner stock, helped by brisk festival-season deliveries and smoother production planning.
Discounts are still available, but as always, on slower-moving models and pre-facelift variants. Depending on region and dealer, stock-clearance discounts of up to Rs 2 lakh can be found on models such as the Honda Elevate, Hyundai Alcazar, Tata Harrier and Safari, Mahindra XUV700 and Bolero Neo, Volkswagen Taigun, Jeep Compass and Meridian, Maruti Jimny and Grand Vitara.
Sedan segment
In the sedan segment, Honda City and Amaze are retailing with benefits of up to Rs 1.5 lakh, while Hyundai Verna and Aura are being marketed with discounts of up to Rs 1.35 lakh. Volkswagen Virtus and Skoda Slavia are also part of the clearance play. However, these are lower than what was on offer last year in December.
On hatchbacks, discounts are in the range of Rs1 lakh on Hyundai Grand i10 Nios and i20, whereas Maruti Alto, Swift and WagonR are being offered with benefits between Rs 30,000 and Rs 50,000. In EVs, slower-moving models of the Nexon EV, Mahindra BE6 and XEV 9e, Citroen eC3, Hyundai Creta EV, Kia EV6 and the newly launched Tata Harrier EV are available with festive-plus benefits.