It may be the perfect time to make the big purchase—be it the dream car, the latest motorcycle, or large-screen LED televisions, with consumer goods manufacturers offering attractive incremental incentives, beyond the price benefits accruing from goods and services tax ( GST) rate cuts, attempting to sharply revitalise sales this festive season.
Several senior industry executives ET spoke to said the price incentives on cars, SUVs, and sedans are currently at an all-time high of 12-15% of a vehicle’s ex-showroom price, more than double the 5-7% offered typically.
In consumer durables too, companies and retailers are offering steep discounts to speedily liquidate unsold stocks after consumers deferred purchases in the past few weeks, anticipating lower prices after the revised GST rates are rolled out.
“The average discount in TV category will be 25-26% in the first four days of the festive sales to clear out maximum inventory after which it will fall to 12-15% like every year,” said Avneet Singh Marwah, chief executive at online-focused TV manufacturer Super Plastronics, which sells brands such as Kodak, Thomson, and Blaupunkt.
Automakers such as Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra announced additional price incentives beyond the GST rate cuts, that take effect September 22.
“This is the biggest tax cut the Indian auto industry has seen in the last 30 years,” said Tarun Garg, chief operating officer at Hyundai India. “We are continuing with all existing consumer schemes, which will take price benefits to customers to record levels starting the first day of the Navratri.”
Garg said he expects the auto industry to recover strongly from the demand stress faced in the last 6-8 months. “We expect sales this Navratri season to grow at least 50% over CY2022 (when it previously reported its best-ever festive sales),” he said.
Garg noted demand is strong across categories, especially for compact SUVs where it is double that of other segments.
Maruti Suzuki, the country’s leading carmaker, too is extending additional festive offers of Rs 5,000-75,000 till September-end. These incentives are over and above the price cuts of Rs 46,000-129,000 across its entire range to extend full benefits of the lowered GST rates besides additional price cuts on some models.
“This year, during Shraddh, we saw bookings go up by 30% compared to last Shraddh. And this happened before the announcement of our strategic pricing,” said Partho Banerjee, senior executive officer (marketing and sales), Maruti Suzuki. “Now with the new prices, the festive offers, we expect demand to increase further.”
Sanjay Passi, chairman, Pasco Group, among the largest dealers of Maruti Suzuki cars and Tata Motors commercial vehicles noted, “On very rare occasions, we have seen vehicle prices decrease and never to this extent. Customers who were on the fringe will also jump in and close purchases.”
“There are several tailwinds including the start of the Navratri, which is an auspicious time for making purchases, reduction in tax rates, best-ever discounts announced by companies. We have had a tsunami of enquiries,” said Passi.
Consumer electronics manufacturers too confirmed they are raising average discounts during the first few days of festive sales starting Monday to recover from sharply weaker sales this calendar year till September 20.
“We are giving additional discounts in the form of price reduction or higher cashback to ensure the pent-up demand is strong after the GST rate cut,” said Satish NS, president, Haier India.
He said the company would offer its highest-ever discount in at least the last six years this festive season, along with the GST benefits. “This should create a FOMO (fear of missing out) effect on consumers,” he said.
Taxes on TVs with over 32-inch screen sizes, air conditioners, and dishwashers have been reduced to 18% from 28%. For others like refrigerators, smartphones, and washing machines, it is already 18% and there is no change.
Leading electronic retail chain Vijay Sales director Nilesh Gupta said there is so much competition among the brands that discounts will remain high from their end, including longer-tenure EMI offers and better cashback. “The GST cut during the festive period is the time when brands can lock consumers for life with best prices,” he said.
Ecommerce marketplaces such as Amazon and Flipkart are starting their biggest festive sales from September 22 to coincide with the GST cut. The discount on electronics is up to 80%, up to 70% on everyday needs, and up to 65% on TV and home appliances.
Several senior industry executives ET spoke to said the price incentives on cars, SUVs, and sedans are currently at an all-time high of 12-15% of a vehicle’s ex-showroom price, more than double the 5-7% offered typically.
In consumer durables too, companies and retailers are offering steep discounts to speedily liquidate unsold stocks after consumers deferred purchases in the past few weeks, anticipating lower prices after the revised GST rates are rolled out.
“The average discount in TV category will be 25-26% in the first four days of the festive sales to clear out maximum inventory after which it will fall to 12-15% like every year,” said Avneet Singh Marwah, chief executive at online-focused TV manufacturer Super Plastronics, which sells brands such as Kodak, Thomson, and Blaupunkt.
Automakers such as Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra announced additional price incentives beyond the GST rate cuts, that take effect September 22.
“This is the biggest tax cut the Indian auto industry has seen in the last 30 years,” said Tarun Garg, chief operating officer at Hyundai India. “We are continuing with all existing consumer schemes, which will take price benefits to customers to record levels starting the first day of the Navratri.”
Garg said he expects the auto industry to recover strongly from the demand stress faced in the last 6-8 months. “We expect sales this Navratri season to grow at least 50% over CY2022 (when it previously reported its best-ever festive sales),” he said.
Garg noted demand is strong across categories, especially for compact SUVs where it is double that of other segments.
Maruti Suzuki, the country’s leading carmaker, too is extending additional festive offers of Rs 5,000-75,000 till September-end. These incentives are over and above the price cuts of Rs 46,000-129,000 across its entire range to extend full benefits of the lowered GST rates besides additional price cuts on some models.
“This year, during Shraddh, we saw bookings go up by 30% compared to last Shraddh. And this happened before the announcement of our strategic pricing,” said Partho Banerjee, senior executive officer (marketing and sales), Maruti Suzuki. “Now with the new prices, the festive offers, we expect demand to increase further.”
Sanjay Passi, chairman, Pasco Group, among the largest dealers of Maruti Suzuki cars and Tata Motors commercial vehicles noted, “On very rare occasions, we have seen vehicle prices decrease and never to this extent. Customers who were on the fringe will also jump in and close purchases.”
“There are several tailwinds including the start of the Navratri, which is an auspicious time for making purchases, reduction in tax rates, best-ever discounts announced by companies. We have had a tsunami of enquiries,” said Passi.
Consumer electronics manufacturers too confirmed they are raising average discounts during the first few days of festive sales starting Monday to recover from sharply weaker sales this calendar year till September 20.
“We are giving additional discounts in the form of price reduction or higher cashback to ensure the pent-up demand is strong after the GST rate cut,” said Satish NS, president, Haier India.
He said the company would offer its highest-ever discount in at least the last six years this festive season, along with the GST benefits. “This should create a FOMO (fear of missing out) effect on consumers,” he said.
Taxes on TVs with over 32-inch screen sizes, air conditioners, and dishwashers have been reduced to 18% from 28%. For others like refrigerators, smartphones, and washing machines, it is already 18% and there is no change.
Leading electronic retail chain Vijay Sales director Nilesh Gupta said there is so much competition among the brands that discounts will remain high from their end, including longer-tenure EMI offers and better cashback. “The GST cut during the festive period is the time when brands can lock consumers for life with best prices,” he said.
Ecommerce marketplaces such as Amazon and Flipkart are starting their biggest festive sales from September 22 to coincide with the GST cut. The discount on electronics is up to 80%, up to 70% on everyday needs, and up to 65% on TV and home appliances.
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