It may be the perfect time to make the big purchase-be it the dream car, the latest motorcycle, or large-screen LED televisions, with consumer goods manufacturers offering attractive incremental incentives, beyond the price benefits accruing from goods and services tax ( GST) rate cuts, attempting to sharply revitalise sales this festive season.
Several senior industry executives ET spoke to said the price incentives on cars, SUVs, and sedans are currently at an all-time high of 12-15% of a vehicle's ex-showroom price, more than double the 5-7% offered typically.
In consumer durables too, companies and retailers are offering steep discounts to speedily liquidate unsold stocks after consumers deferred purchases in the past few weeks, anticipating lower prices after the revised GST rates are rolled out. "The average discount in TV category will be 25-26% in the first four days of the festive sales to clear out maximum inventory after which it will fall to 12-15% like every year," said Avneet Singh Marwah, chief executive at online-focused TV manufacturer Super Plastronics, which sells brands such as Kodak, Thomson, and Blaupunkt.
Strong Recovery Hopes in Auto
Automakers such as Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra announced additional price incentives beyond the GST rate cuts, that take effect September 22.
“This is the biggest tax cut the Indian auto industry has seen in the last 30 years,” said Tarun Garg, COO at Hyundai India. “We are continuing with all existing consumer schemes, which will take price benefits to customers to record levels starting the first day of the Navratri.”
Garg said he expects the auto industry to recover strongly from the demand stress faced in the last 6-8 months. “We expect sales this Navratri season to grow at least 50% over CY2022 (when it previously reported its best-ever festive sales),” he said, noting that demand is strong across categories, especially for compact SUVs where it is double that of other segments.
Maruti Suzuki too is extending additional festive offers of ₹5,000-75,000 till September-end. These incentives are over and above the price cuts of ₹46,000-129,000 across its entire range to extend full benefits of the lowered GST rates besides additional price cuts on some models.
Several senior industry executives ET spoke to said the price incentives on cars, SUVs, and sedans are currently at an all-time high of 12-15% of a vehicle's ex-showroom price, more than double the 5-7% offered typically.
In consumer durables too, companies and retailers are offering steep discounts to speedily liquidate unsold stocks after consumers deferred purchases in the past few weeks, anticipating lower prices after the revised GST rates are rolled out. "The average discount in TV category will be 25-26% in the first four days of the festive sales to clear out maximum inventory after which it will fall to 12-15% like every year," said Avneet Singh Marwah, chief executive at online-focused TV manufacturer Super Plastronics, which sells brands such as Kodak, Thomson, and Blaupunkt.
Strong Recovery Hopes in Auto
Automakers such as Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra announced additional price incentives beyond the GST rate cuts, that take effect September 22.
“This is the biggest tax cut the Indian auto industry has seen in the last 30 years,” said Tarun Garg, COO at Hyundai India. “We are continuing with all existing consumer schemes, which will take price benefits to customers to record levels starting the first day of the Navratri.”
Garg said he expects the auto industry to recover strongly from the demand stress faced in the last 6-8 months. “We expect sales this Navratri season to grow at least 50% over CY2022 (when it previously reported its best-ever festive sales),” he said, noting that demand is strong across categories, especially for compact SUVs where it is double that of other segments.
Maruti Suzuki too is extending additional festive offers of ₹5,000-75,000 till September-end. These incentives are over and above the price cuts of ₹46,000-129,000 across its entire range to extend full benefits of the lowered GST rates besides additional price cuts on some models.
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