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For hatchbacks and sedans, offers range between Rs 40,000 and Rs 80,000 while SUVs and multi-purpose vehicles carry benefits exceeding Rs 1 lakh.
IMAGE: Maruti Suzuki Ertiga cars parked at Maruti Suzuki’s plant in Manesar, Haryana. Photograph: Bhawika Chhabra/Reuters
Festive discounts on mass-market passenger vehicles continued to remain high in August, ranging between Rs 40,000 to over Rs 1 lakh, as carmakers scramble to liquidate inventory ahead of the upcoming launches and avoid heavy discounting during the festive season.
The discounts are almost at a similar level as compared to last year.
In 2024, carmakers had rolled out steep incentives to clear older stock, with average cash discounts and exchange bonuses in the Rs 60,000 to Rs 1 lakh range on slow-moving models.
This year, while the quantum remains high, the spread has widened to popular mass-market hatchbacks and sedans, with offers ranging between Rs 40,000 and Rs 80,000, while select SUVs and multi-purpose vehicles carry benefits exceeding Rs 1 lakh, especially for older models still in stock.
Nearly one-fourth of the annual car sales happen during the festival months in India, and original equipment manufacturers (OEMs) typically raise production to meet demand.
Discounts to lure customers at the onset of the festivals is a sign of relatively tepid demand sentiment.
Passenger vehicle retail sales declined marginally year-on-year in July.
Dealers say higher discounts on premium mass-market models are aimed at countering rising EMI costs and clearing units ahead of upcoming festival launches.
Tata Motors Group CFO P Balaji acknowledged that “ICE discounts in the market remain elevated”, but said the company is tackling the issue by reducing dealer-end inventory ahead of and during the festive season to prevent heavy discounting.
“Post-festival season, we aim to bring stock levels down sharply to protect dealer profitability and avoid panic-driven price cuts,” he said, adding that the focus is on retail sales rather than wholesale market share.
Dealers also say discounting may persist in the run-up to the festive season as firms compete for buyer attention amid a flurry of launches and the lingering impact of high interest rates.
However, if retail demand picks up during the September-November period, OEMs may taper incentives towards the year-end.
Compared with 2024, the 2025 discount landscape also reflects a sharper segmentation strategy by manufacturers.
Last year’s broad-based offers often spanned entire portfolios, while this year’s benefits are more targeted — focusing on slower-moving trims, previous model-year inventory, and regions with weaker retail momentum.
Analysts note that while total discount outlay remains high, carmakers are being more surgical in their approach, balancing sales pushes with profitability concerns.
This month in the compact SUV segment, Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara are available with combined benefits ranging between Rs 45,000 and Rs 80,000, depending on variant and location.
In the premium hatchback category, Maruti Baleno, Hyundai i20, and Tata Altroz are being retailed with discounts of Rs 30,000 to Rs 60,000.
The entry-level hatchback and sedan segments are also witnessing aggressive price support.
Maruti Alto K10, Renault Kwid, and Hyundai Grand i10 Nios are offering benefits from Rs 25,000 to Rs 50,000, while compact sedans such as Honda Amaze, Maruti Dzire and Hyundai Aura are available with Rs 35,000 to Rs 70,000 in total offers.
Mid-size sedans, including Hyundai Verna and Honda City, are seeing discounts climb up to Rs 1 lakh on select variants.
Larger SUVs and MPVs like Toyota Innova Crysta and Tata Safari are seeing deals in the Rs 50,000 to Rs 1.2 lakh range, while Mahindra’s Scorpio-N and XUV700 are being pushed with benefits of Rs 40,000 to Rs 80,000 in certain markets.
However, high-demand models with long waiting periods remain largely insulated from heavy discounting.
In the run-up to the festive season, carmakers are looking to clear inventory amid stiff competition.
Among compact hatchbacks, Maruti Celerio and Wagon R each are available with discounts ranging between Rs 55,000 and Rs 60,000, depending on variant and stock levels at dealerships, while the Grand i10 Nios is carrying cash benefits and exchange bonuses totalling around Rs 50,000 in certain markets.
In the mid-size hatchback space, Toyota Glanza is being offered with benefits similar to the Baleno’s Rs 30,000 to Rs 40,000 range, while i20 is available with Rs 35,000 to Rs 45,000 in benefits, including corporate offers.
Small and mid-size SUVs are witnessing even steeper price cuts.
Maruti Brezza is available with Rs 40,000 to Rs 55,000 in benefits, Hyundai’s Venue with Rs 45,000 to Rs 55,000, Tata’s Nexon with up to Rs 50,000, and Mahindra’s XUV300 with schemes worth Rs 60,000 to Rs 70,000 in some cities.
In the larger SUV space, the Hyundai Alcazar is being offered with Rs 70,000 to Rs 80,000 in discounts, while the Tata Harrier is attracting benefits between Rs 75,000 and Rs 1 lakh depending on model year and variant.
Even in the sedan segment, where volumes have been softer, deals are enticing. Skoda’s Slavia and Volkswagen’s Virtus are carrying offers in the Rs 55,000 to Rs 65,000 range, while City is available with benefits up to Rs 75,000 and Verna with discounts of around Rs 60,000 to Rs 65,000.
The offers
Discounts on offer for different models
- Rs 45,000-Rs 80,000: For compact SUVs like Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara
- Rs 30,000-Rs 60,000: In premium hatchbacks like Maruti Baleno and Tata Altroz
- Rs 25,000-Rs 50,000: For entry-level hatchbacks like Maruti Alto K10 and Renault Kwid
- Rs 35,000-Rs 70,000: Among compact sedans like Honda Amaze, Maruti Dzire, and Hyundai Aura
- Rs 55,000-Rs 60,000: For compact hatchbacks such as Maruti Celerio and Wagon R
Feature Presentation: Ashish Narsale/Rediff
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