Leading automakers Tata Motors and Mahindra & Mahindra (M&M) have announced substantial discounts on their popular SUVs due to weakening demand and rising inventory.
Mahindra is offering celebratory discounts of over Rs 2 lakh on its top-tier AX7 variants of the XUV700 as it approaches its three-year anniversary in the Indian market. Starting from Wednesday, the price for the AX7 range will be Rs 19.49 lakh, down from Rs 21.54 lakh. This discount is valid for the next four months. The XUV700 recently celebrated the production of its 200,000th unit, cementing its status as a highly popular model.
Tata Motors has also introduced significant price cuts as part of its 'King of SUVs festival.' Prices on select models have been reduced by up to Rs 70,000, with additional benefits of up to Rs 1.4 lakh on various fossil fuel and EV SUV variants. The revised starting prices apply to models like the Tata Harrier and Safari.
These price cuts come shortly after the Uttar Pradesh government waived registration fees on strong hybrid cars, effectively reducing on-road prices by up to Rs 3 lakh.
In June, India’s auto retail sales grew by only 0.73 percent annually, attributed to the delayed monsoon in some regions. Sales of passenger vehicles (PV) and commercial vehicles (CV) fell by 7.18 percent and 12.42 percent month-on-month, respectively, indicating poor market sentiment.
The Federation of Automobile Dealers Associations (FADA) noted that inventory levels have reached an all-time high, ranging from 62 to 67 days. Despite better product availability and significant discounts to boost demand, market sentiment remains low due to extreme heat reducing walk-ins by 15 percent and delayed monsoons.
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