Mumbai: As customers flock to car showrooms to hog the plethora of pre-GST offers, retail car sales should be up by 12-15 per cent in May, say top auto-financers.
Top brands like Hyundai, Maruti Suzuki, Nissan, Ford, Mahindra are offering big discounts, in an attempt to clear their existing stocks. According to auto-finance sources, June end could witness customers walking away from showrooms, unable to buy their choice of brand or model or variant as dealers may go out of stock. Wholesale dealers may however record flat to negative growth before GST rollout, reported the Times of India.
Some cars may actually become cheaper post the GST rollout. In order to lure consumers into making their purchases now instead of wait for the lower prices to hit next month, dealers are offering huge discounts to level the post-GST prices – so that they too can drive out their existing stocks.
"Those companies which have agreed to pass on the GST related discounts to dealers so consumers don't hesitate to buy cars before GST rollout are seeing good retail pick up," said Ashok Khanna, group head, vehicle loans, HDFC Bank. Brands like Maruti, Hyundai and Honda, have agreed to back up dealers with “adjustments” so they can offer discounts to customers now.
The pre-GST discounts are driving customers into showrooms, especially as far as the luxury segment is concerned. "The pre-GST offers have brought the customers back to showrooms and retail has been good. Compared to May, overall car retail should be up 12-15% in June. Super luxury cars are doing particularly well," said Vyomesh Kapasi, CEO, Kotak Mahindra Prime.
In contrast, wholesales may record flat to negative growth as companies will put a hold on dispatches before July 1.