 "From EMIs to discounts, luxury car companies switch to festive gear")
From attractive EMIs to assured buyback guarantees, luxury carmakers have lined up a slew of offers to woo customers this festival season to address dwindling sales amid rising inventories.
The festival season in India typically begins sometime in October and continues till December.
Audi India is offering discounts on service plans, accessories, and a raft of benefits during the festival season as it celebrates the milestone of selling 100,000 models with its ‘100 Days of Celebration’ campaign.
For the first time, the German auto major is offering discounts on service plans, accessories, and extended warranties, along with exclusive finance and exchange benefits.
Audi’s best-selling models, the A4, Q5, and the Q8, are driving demand.
“We have curated exclusive benefits for our esteemed customers, which includes 10 per cent off on service plans and comprehensive service value plans, 20 per cent off on Audi genuine merchandise and collections and 10 per cent off on extended warranty and Audi genuine accessories,” said Balbir Singh Dhillon, head of Audi India.
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The luxury car market in India currently accounts for less than 2 per cent of the overall passenger vehicle market in the country.
Santosh Iyer, managing director and chief executive officer of Mercedes Benz India, said their ‘Dream Days Campaign’ is receiving enthusiastic response.
“This festival season, we have curated an innovative ‘Dream Days Campaign’ enabling customers to fulfil their aspirations of buying a cherished Mercedes-Benz. The campaign is receiving good response, as customers are availing lower EMIs, complimentary insurance, depreciation and trade-in benefits. Our battery electric vehicle customers can avail benefits ranging from 50 per cent road tax reduction to exclusive recyclable benefits, enticing them for sustainable mobility.”
Iyer claimed that Mercedes Benz is witnessing “better customer sentiment this year owing to strong market, better corporate earnings” and a slew of launches.
He noted that the festival season generally ekes out high double-digit sales growth, helping the automaker average out single-digit growth of the previous quarters.
BMW Group India has kicked off the season with its ‘BMW JOY Days’ campaign, offering customers with a range of financial packages.
With interest rates starting at 7.75 per cent per annum, which is 40 per cent lower than the standard rate applicable on the 3 Series, the prices range between Rs 41.40-52.90 lakh.
It is also offering attractive EMI options to lure customers.
The EMI plans begin at Rs 49,999, which includes BMW Service Inclusive and registration charges and is applicable on the BMW 2 Series Gran Coupe and X1.
For some models, the assured buyback value goes up to 74 per cent based on the two-year loan tenure and annual mileage of 10,000 kilometers, the company said.
According to industry analysts, luxury car sales have remained steady, with a slight uptick in vehicle values driving the overall revenue growth.
Anurag Singh, managing director of Primus Partners, said that as the average value of vehicles is increasing, the overall revenue is also expected to grow.
Luxury and the super luxury segment have done well between April and August. Hence a number of eye-catching deals are available to customers, as OEMs and dealers have ready inventory, analysts said.
“Luxury carmakers have been offering discounts on financing, service plans, merchandise, and extended warranties for many years. In fact, passenger vehicle sales during the festival season in 2023 (October-November) were 11 per cent higher compared to 2022. The 2024 festival sales are expected to fall between the 2022 and 2023 figures,” Singh added.
Pre-owned luxury cars are also gaining traction. Big Boy Toyz, a pre-owned luxury car dealership, is offering extended warranties and complimentary service packages.
“We’re not just selling cars, but also offering curated experiences,” said Jatin Ahuja, founder of Big Boy Toyz.