Discounts on cars in India to continue in 2013

The month of December 2012 witnessed a rise in discounts and various benefits offered by auto players in the Indian car industry. Most carmakers offered huge discounts across car models to attract customers and initiate sales.

The discounts offered by automakers were also seen as an attempt to clear out the inventories of the year 2012. Simultaneously, the carmakers also announced price hikes effective from January 2013, which was also seen as a move to push customers into making purchases in the year 2012 itself.

However, with the prevailing low consumer sentiments, the discounts and freebies that were being offered in the year 2012 will continue to be offered in 2013 with the expectations that they will drive the customers back into the showrooms.

The constant fear of fuel hike and excise duty hike along with high interest rates has also invoked a fear that the year 2013 will not be any easier than 2012 in terms of sluggish economic activity and low demand for automobiles.