Average Incentives Offered On Hatchbacks By Automakers India Up By 31% In 2020

The Indian automotive market is constantly changing, and the consumers are more demanding than ever. The OEMs always look to lure customers with several types of incentives and consumer schemes, especially to revive slow demand from the consumers. With the sales and production being impacted by the COVID-19 crisis, the consumers not turning up for purchasing new vehicles is directly affecting the OEMs. Addressing this concern, the OEMs have come with safe and secure online booking platforms to keep the sales going. According to the latest findings from Jato, the average incentives offered on hatchback by the OEMs have gone up by 31 per cent on an annual basis.

By Charanpreet Singh

1 mins read

Published on July 18, 2020

Highlights

Average incentives on hatchback up by 31 per cent
Higher incentives reduce upfront cost.
Growing SUV segment saw a decrease in average incentives by 50 per cent

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. Also Read: BS6 Car Discounts: Offers Up to ₹ 70,000 On Renault Duster, Kwid And Triber The average incentives on hatchbacks increased by 31 percent in 2020 The incentives offered in the hatchback segment for the year stood at Rs. 17,888 last year which increased to Rs. 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 undefined On the other hand, the average incentives offered on MPVs also saw an upward trend of 3 per cent in 2020. The OEMs offered Rs. 13,002 as an average incentive on an MPV as compared to Rs. 11,465 last year. Also Read: Mahindra Introduces Special Buying Offers For Covid-19 Warriors The average incentives offered by OEMs on SUV decreased by 50 per cent 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 Rs. 23,400 which was reduced by the OEMs to Rs. 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 Rs. 26,958 which was offered last year, came down to Rs. 17,754.