Chennai: Discounts and benefits to buying cars at a 3-year low with 28 models of a total of 88 do not attract any scheme in 2021, compared to 21 of 106 and 23 of 106 years 2019.
Data compiled by Jato Dynamics, suppliers Car business intelligence, indicates that the average discount rate has shrunk more than 50% since 2019 with a SUV discount fell from Rs 47,000 to RS 15,000, while small car discounts dropped from Rs 43,600 to RS 13,000 as a supply problem disrupting the market due to lack of semiconductors.
This has resulted in customers not getting the car they want, and do not want the car they get.
Jato President Ravi Bhatia said, “Navratri retail is not in line with expectations.
Entry-level cars, although there are several schemes, do not sell with customers who move away due to economic reasons.
In a higher segment, there is request but also lack of vehicles.
The new launch has Long queues and excitement, but lack of inventory means there is a low sales conversion.
“Part of the problem of course is a shift that has occurred towards the SUV.
ICRA Group Head & VP (Corporate Ranking) Shamsher Board said, “The level of a thin inventory due to lack of chip and there is a shift towards a medium-sized hatchback and compact SUV.” Car dealers say, like two-wheeled, entry-level cars have also seen requests dip because discounts are cut and prices rise.
Dealer M & M Nikunji, which is the executive director of JS4Wheel Motor, said “The demand for entry-level cars in several markets fell 30% compared to 2019.” Car prices have increased with the company taking several markups which quote input fees, including steel.
And with discounts, tags are not interesting to upgrade two wheels.
Toyota Dealer Anaamalais Toyota Deputy MD CS Vigneshwar said, “There is a problem of profitability because of the price of raw materials for producers and, coupled with a low amount of production, no need for discounts.
But the lack of discounts affects the trigger to make customers enter the showroom, therefore impacts on retail Also.
So, more customers may jump directly into the car on the entry-level of Alto or Wagonr – to SUVs and premium hatchback.
“Car dealers say high fuel prices also play spoilsport, especially with segments that only enter the car market and most sensitive to discounts.
“The entry-level car market behaves like two wheels where demand fell 30% compared to 2019 and inventory was at a height of 12-16 weeks,” Sanghi said, who also had the dealer of the Motocorp hero in Delhi.
Discount car slippage to 3-yr level on supply misery
