Tata Motors slashes SUV prices by up to ₹2 Lakh to boost festive sales

New Delhi: Tata Motors has announced significant price cuts of up to ₹2 lakh on select SUV models as part of its festive season offerings, aiming to boost demand in the sluggish passenger vehicle (PV) market. 

This move aims to counter the 3.46% month-on-month (m-o-m) and 4.53% year-on-year decline in passenger vehicle sales in August, as reported by the Federation of Automobile Dealers Associations (FADA).

The discounts will apply to all variants of popular Tata Motors SUVs, including the Harrier, Safari, and Nexon, with the amount varying by location and dealership. 

In addition to price cuts, customers can also benefit from exchange bonuses, cash offers, as well as value-adds such as extended warranties and free accessories. These offers will be available throughout October, aligning with major festivities, including Diwali, to drive consumer purchases during the critical holiday period.

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“Inventory levels have reached alarming highs, with stock days now stretching to 70-75 days. Inventory across dealerships totals 780,000 vehicles, valued at ₹77,800 crore. Despite the slowdown, original equipment manufacturers of passenger vehicles continue to increase dispatches to dealers on a m-o-m basis, further exacerbating the issue,” Manish Singhania, president, FADA, said. 

According to a FADA statement, several challenges are emerging as the festive season approaches, which could further affect auto sales.

“India experienced 16% above-normal rainfall in August, with additional heavy rainfall forecasted for September, according to the India Meteorological Department (IMD). This excessive rain threatens crops nearing harvest, particularly those planted in late June. Poor agricultural output could directly impact rural sales, reducing purchasing power in key regions.”

Additionally, the Shraddh period in September, deemed an inauspicious time for purchases, could lead to a temporary sales slowdown, putting extra pressure on dealers who are already managing high inventories.

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