Tata Motors has rolled out substantial price reductions of up to ₹2 lakh on select SUV models as part of its festive season strategy, aimed at reviving demand in the sluggish passenger vehicle (PV) market. These price cuts are designed to counter the declining trend observed in August, where passenger vehicle sales dipped by 3.46% compared to the previous month and 4.53% year-on-year, according according to information provided by the Federation of Automobile Dealers Associations (FADA).
The discounts will be applicable across various variants of Tata Motors’ popular SUV lineup, including the Harrier, Safari, and Nexon. The extent of the price reduction will differ based on dealership location, with individual offers varying by region. In addition to the slashed prices, customers can also take advantage of additional incentives such as exchange bonuses, direct cash discounts, extended warranties, and complimentary accessories. These offers are set to run throughout October, coinciding with major festivities like Diwali, to encourage consumer spending during the festive period.
Manish Singhania, FADA’s president, highlighted a growing concern over ballooning inventories across dealerships. He revealed that stock levels have now reached critical thresholds, with inventory days extending to 70-75 days. Dealerships across India are currently sitting on an inventory worth approximately ₹77,800 crore, consisting of around 780,000 vehicles. Despite the slowdown in consumer demand, original equipment manufacturers (OEMs) have continued to increase the number of vehicles dispatched to dealerships on a month-to-month basis, further contributing to the inventory glut.
FADA has expressed concern that several factors could dampen auto sales during the upcoming festive season. India witnessed 16% above-average rainfall in August, and the India Meteorological Department (IMD) has forecasted more heavy rains in September. This excessive rainfall poses a threat to crops approaching harvest, particularly those planted in late June. A poor agricultural yield could have a direct impact on rural sales, as reduced purchasing power in key rural regions might curtail vehicle purchases.
Additionally, the Shraddh period in September, traditionally considered an inauspicious time for major purchases, could result in a temporary slowdown in sales. This could put additional pressure on dealerships, which are already grappling with high inventory levels as they prepare for the festive season.
Topics #festival #news #Sales #SUV #Tata #Tata Cars #Tata Motors #Tata SUV #Tata Vehicles
