The demonetisation of Rs 500 and Rs 1000 from Government of India has created a wave of turmoil in the Indian automobile industry. The new car sales have taken a worst hit in the country.
To cope with this situation Mahindra & Mahindra is offering heavy discounts across its product portfolio in the country to ease the inventory pile at the dealerships which is caused by demonetisation.
Mahindra & Mahindra official confirmed this development to its dealer partners during a video conference on Thursday. As per the sources the discount offered goes up to Rs 2.71 lakh per model.
The Mahindra dealers confirmed that the current inventory pile is of over 40 days. The retail sales for the company have dropped heavily as most of its vehicles are sold in the rural and semi-urban areas.
Mahindra's largest selling SUV, the Scorpio is offered with a discount up to Rs 50,000 depending on the location and variants. The Bolero which has a high demand in rural areas comes with a discount up to Rs 67,000.
Mahindra's best selling premium SUV, the XUV 500 and KUV 100 has discounts up to Rs 89,000 and Rs 73,000 respectively. The sales of the KUV 500 has been very weak for few months and it gets a large chunk of discount.
The most expensive SUV from Mahindra, the Ssangyong Rexton is offered with a discount of Rs 2.71 lakh depending on the geography, variants and other factors.
Other car manufactures in the country are also suffering from demonetisation. Maruti Suzuki and Hyundai Motor have piled up even higher inventories and we can expect them to roll out discount offers in the coming months.