Friday, April 12, 2024

Buying a car? Forget waiting periods, dealers are now dangling discounts as market turns


If you want to buy a car this year, you could likely get lucrative discounts and attractive offers as price hikes could come to an end following long waits for car deliveries during the years of production shortages in the Covid period. As per a report in the Times of India, industry officials and analysts said that this year could be the year when car industry witnesses limited growth as it witness a fall in demand while inventories build up. The car industry has been moving up for past three years.

Cars are seen parked under solar panels at the manufacturing plant of Maruti Suzuki in Manesar, in the northern state of Haryana, India.(Reuters)

Demand slowdown this year?

But experts told the outlet that the car market is likely to close the current fiscal on record volumes of 42.9 lakh units but the pace at which consumers booked and bought cars during last three years may now see a slowdown.

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Will cars be cheaper this year?

Ravi Bhatia, president and director at research firm JATO Dynamics, said as per the report, “There are a variety of factors that will keep growth muted in FY25. Apart from a heavier br, the reasons also include cars getting expensive during the previous years and Covid production shortfall being met subsequently. Also, used cars will take up a share from new car sales, especially in the entry category.”

The Covid pandemic resulted in severe global shortages in supply of semiconductors which led to huge waiting periods across brands. Pending deliveries rose to as high as 7 lakh units at one point in time but companies slowly increased production as semiconductor availability eased.

How will the car market growth look like this year?

Shashank Srivastava, senior executive officer (sales & marketing) at Maruti Suzuki said, “Going by the current analysis, it looks like growth would be muted, or at best be in low single digit.”

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