The Indian automotive market is constantly changing, and now with the pent up demand, because of the lockdown, there' a lot more that the consumer expects. Considering that customers are not willing to/cannot visit showrooms, automakers are trying their best to cater to the demands of customers. On more than one occassion, customers are now demanding discounts from the automakers and that's claerly not easy given the current situation. However, to influence sales numbers and to help keep a balance between supply and demand, a lot of carmakers are introducing incentives on cars, but Jato Dynamics, a global supplier of automotive business intelligence, have issued its findings on which car segment has seen more incentives. The survey says that incentives offered by companies in the hatchback segment have gone up by 31 per cent in 2020 when compared to 2019.
The incentives offered in the hatchback segment for the year stood at ₹ 17,888 last year which increased to ₹ 21,844, witnessing a variantion of 31 per cent. Notably, higher incentives offered by the OEMs reduce the upfront cost but it may result in higher depreciation.
The average incentives on hatchback are up 31% on an annual basis. Higher incentives reduce upfront cost but may lead to higher depreciation. Growing demand for SUV styled vehicles has allowed OEMs to decrease average incentives by 50%.#ConsumerScheme #hatchback #SUV pic.twitter.com/iRepdXcz9v— JATO Dynamics India (@JATOIndia) July 17, 2020
On the other hand, the average incentives offered on MPVs also saw an upward trend of 3 per cent in 2020. The OEMs offered ₹ 13,002 as an average incentive on an MPV as compared to ₹ 11,465 last year.
With the increased demand for the SUV styled vehicles, the OEMs reduced the average incentives by 50 per cent. Last year, the average incentive offered on the SUV-styled vehicles was ₹ 23,400 which was reduced by the OEMs to ₹ 11,797 this year. A similar trend was recorded for the sedan segment as well. The average incentives on sedan plunged by 34 per cent on an annual basis. The average incentive of ₹ 26,958 which was offered last year, came down to ₹ 17,754.