During this time of coronavirus pandemic and economic slowdown, manufacturers offering enticing schemes are likely to get an edge as customers are willing to switch brand loyalties
With the coronavirus hitting us hard, vehicle buying sentiment is at an all-time low. A survey we recently conducted disclosed that 60% buyers may drop vehicle purchase plan. With social distancing becoming the norm, the remaining 40%, however, still seem to be considering buying a vehicle – some with a reduced budget or in even in the pre-owned vehicle space.
The results of our survey also revealed that buyers are willing to let go off their preferred choice of brand for better offers and schemes. And in that regard, buyers are primarily looking at good discount schemes and a lowered rate of interest for vehicle loans. This can be a huge opportunity for some manufacturers to upset the established order.
Having just made the switch to more stringent BS6 compliant vehicles, manufacturers aren’t quite offering heavy discounts on their products as of now. Manufacturer discounts currently vary in the Rs 15,000 to Rs 50,000 range for most hatchbacks, mid-sized sedans and crossover SUVs under Rs 12 lakh. To be honest, these kinds of discounts are usually offered around the year by most manufacturers. Having said that, buyers can get higher discounts on some more expensive cars. Honda is now offering a discount of up to Rs 1 lakh on the City and Mahindra too is offering benefits worth of almost Rs 3 lakh on the Alturas. In addition, carmakers like Hyundai, Volkswagen, Skoda, and Renault are also offering interesting finance schemes like buy now pay later, step-up EMIs, step-down EMIs and the likes.
With the automotive industry almost re-starting from scratch, these next few months can be a huge opportunity for manufacturers who can lure customers in with interesting offers and good support. It can be just the catalyst that the industry needs to give the automotive sector the much-needed boost.