Car buyers waiting for better offers might be in for a 'ride shock'

Car buyers looking for hefty discounts in the run-up to the new emission norms (BS-VI) being implemented are in for a disappointment. Not only is there very little reduction in prices, passenger vehicle models, variants or colours of their choice are also likely to be rare, said industry sources.

The discounts that were available on cars last month continue this month — but they are lower. These offers are also unlikely to last long as stocks at most dealerships have fallen considerably since Diwali (October 27).

“A lot of models of various brands are already in short supply,” said Sanjay Thakker, chairman, Landmark Group, adding: “Those looking to buy BSIV models shouldn’t wait.” Landmark is a dealer for Mercedes, Honda Cars, Renault, Nissan, Chrysler, and Volkswagen.

The trend is a stark departure from previous years when emission norms have changed. Manufacturers usually pull all stops to woo buyers till the last day to make the most of the rush to beat the price hike.

This time, however, the cut-off date for production and registration of all vehicles following older norms (BS-IV) is the same — March 31, 2020. So this time, automakers have to ensure that they not only wind up production by that date but also that there are no unregistered models across their channel.

“It’s a critical situation. One has to be precise in forecasting — meet the demand as well as not have inventory,” said Vikas Jain, national sales head, Hyundai Motor India.

So, carmakers are trying to dispose all inventory by that date, so that they do not have to resort to a fire sale.

For instance, Volkswagen (VW) India: It launched a new scheme this month — “diesel cars at the price of petrol cars” — to push the slow-moving diesel variants out of its showrooms. A Mumbai-based dealer said the scheme has helped sell most of the VW diesel cars.

“Those waiting for better offers might be in for a ride shock,” he said.

A company spokesperson said, “Given changing demand, the company will continue to explore all possible engine and fuel options in line with BS-VI requirements.”

With the slowdown in the economy and possible disruption because of change in emission norms, others are also not leaving anything to chance.

“We are continuing the festive offers,” said Hyundai’s Jain, adding that some offers have been withdrawn since last month.

He also said: “The momentum we had in October continues even now. Only Neo and Elanta are BS-VI-compliant. Other models will be upgraded by February-end.”

For market leader Maruti Suzuki India, the situation is a little less challenging. It took a lead in transitioning to BS-VI and has sold more than 300,000 models compliant with the new emission norms since April.

“We have seen lot of traction for BS-VI cars,” said Shashank Srivastava, executive director, sales and marketing, Maruti.

Offers on BS-IV cars are still on, though it is lower than last month. Depending on where you are buying the car and the model, the discount you will get now is about Rs 4,000-5,000 lower, said Srivastava.

Renault also plans to phase out its BS-IV diesel models by April 2020. There has been a marginal spike in demand for thse cars.

Venkatram Mamillapalle, managing director, Renault India, said customers should buy these models now as they are going out of stock faster than anticipated.

Nissan Motor India Managing Director Rakesh Srivastava said attractive offers on its models had helped spike sales.