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Carmakers offering discounts to boost sales

The increasing petrol prices and rising interest rates have made the market so dull that now the automobile companies are planning to offer heavy discounts during the forthcoming festive season, in order to boost sales.

The buyers are likely to respond to this initiative, and the sales figures should go up. This initiative is being taken by both the companies and the dealers.

Companies are offering buyers with easy financial rates and heavy cash discounts. According to sources, discounts would increase during the forthcoming festive season. Top companies like Maruti Suzuki, Hyundai, Honda, Fiat, Toyota and Volkswagen are taking these measures to boost sales which went down 16% in July and 10% in August.

The petrol prices were increased yet again a few days ago. Also, RBI increased its rates of lending. This has further affected the sales of vehicles in India. This year's festive season's sales have been expected to remain on the low side when compared to previous year's. Now, the companies are trying everything to boost the sales.

Honda has already cut down the prices of its two cars- Honda Jazz and Honda City with Rs. 1.6 Lacs and Rs. 66 Thousand respectively. But its dealers are offering more discounts to buyers, as the company has no Diesel cars in the market, and the petrol prices are constantly going up.

Volkswagen has launched special edition versions of Volkswagen Polo and Volkswagen Vento named Breeze. These special editions are loaded with high tech features like rear parking sensors, leather seats and navigation system, but these are available on the same prices as normal versions.

The discount rates have gone up by 20-22 percent this year, as compared to the previous year. This is affecting the profit margins, but the sales are getting a boost up because of the same reason.