New Delhi: Trying to beat the slowdown in sales Hyundai Motor India has announced a discount scheme of Rs34, 000 on its best selling car Santro to Rs2.99 lakh, the price at which the company had launched the Santro in 1998.
As part of the scheme, the company will offer the Santro with free insurance, exchange bonuses and free car accessories. This offer is available for other models, like i10, Getz, Accent and Verna as well Hyundai Motor India (HMIL) said in a statement.
The company said the Santro non AC and Santro GLS would get free insurance as well as car accessories worth Rs7,000 and Rs15,000 respectively.
The company said it will also offer free insurance as well as car accessories worth Rs 5,000 on the company's latest hatchback i10. Apart from this consumers would be offered exchange benefits up to Rs20,000 on all Hyundai cars.
The company has also launched a loyalty scheme wherein existing Hyundai customers can avail loyalty discounts up to Rs20,000 on purchase of a new Hyundai Getz (petrol), Accent (GLE) and Verna (Petrol and Diesel).
Hyundai said company said, ''The schemes announced will provide our customers with an attractive value for money proposition and with the prevailing economic conditions, this should provide an impetus for our sales and offset a part of the ownership cost which has gone up considerably in the past few months," said HMIL senior vice president (marketing & sales) Arvind Saxena said.
After the discounts the price of Accent would reduce by Rs7,200 to Rs499,903, while the Verna will be cheaper by Rs24,000, the company said.
The auto industry is in bad shape at present with car sales falling since the beginning of the year. In November Hyundai's domestic passenger-car sales declined by 23.34 per cent to 14,605 units as compared to 19,052 units in the same month last year.
Struggling with mounting inventory costs and low demand for f cars has led auto makers to look to the government for a cut in interest rates and excise duty.
Other carmakers Maruti, Tata Motors, General Motors, Toyota and Ford are also offering steep discounts to clear inventory, industry officials say.
Ford is offering a Rs20,000-90,000 discount on Fiesta while Maruti is said to be offering a Rs15,000 discount on the Alto, Rs 35,000 on WagonR, Rs20,000 on Zen Estilo and Rs 15,000 on SX4. Tata Motors is also offering a discount of Rs20,000 -30,000 per car.
GM India is offering a Rs58,000 benefit package for the Spark a Rs40,000 benefit package for the mid-size Aveo and Optra, including a Rs20,000 exchange bonus.
Last month the total number of cars sold in India was less than one lakh units against 1.13 lakh units in the same month last year. This works out to a fall of almost 20 per cent. Car makers expect December to be worse as primary sales will take a big hit.
To cut down on inventory costs, manufacturers are cutting down on production or initiating plant shut-downs this month. Toyota, Tata Motors and Ford have reduced production and Maruti among others has opted for a week-long plant shut-down this month.