Volkswagen Offers Huge Cash Discount On Phaeton

Published: Monday, July 25, 2011, 15:22 [IST]

How much can a carmaker offer in cash discounts to sell its cars. We had earlier reported that all carmakers are offering discounts on models that are not selling at expected levels. As per our previous report, the Honda City is the car which has had the highest amount of discounts. Honda reduced the price of the City by Rs.66,000 and followed it with a discount of Rs.54,000. But here is one cash discount that beats them all.

Volkswagen India is now offering its Phaeton luxury sedan with a whopping cash discount of Rs.25 lakhs. The Phaeton is priced at Rs.77 lakhs in India and the discount offer will mean buyers of this luxury sedan will have to pay around Rs.52 lakhs to get their car on their drive way.

The Volkswagen Phaeton is a luxury sedan that competes with cars such as the BMW 7-Series, Mercedes-Benz S-Class and the Audi A8. The Phaeton has never been able to match its competitors and has been a sales failure all over the globe. Volkswagen India brought the Phaeton to India 18 months ago as a brand building exercise and did not expect too many sales. The company managed to sell just 53 Phaetons since its launch.

A Volkswagen India sales executive has confirmed the RS.25 lakh cash discount on the Phaeton. The car will be delivered within a month of booking. Volkswagen was only offering a 5.99 per cent interest rate on the Vento sedan and had not offered any cash discounts. With sales of the Polo, Vento and the Passat at expected levels, the Phaeton was the only under performer.

It remains to be seen if the Rs.25 lakh discount on the Phaeton will cause improved sales. Among luxury cars that are being offered with discounts is the Audi A6. The A6 is getting dealer discounts of Rs.3 lakhs. The Phaeton's discount, however is coming directly from the carmaker.

Article Published On: Monday, July 25, 2011, 15:22 [IST]

Read more on: #volkswagen #luxury cars #phaeton

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