Mahindra offering heavy discounts to push sales

Mahindra is reportedly offering heavy discounts on all models in its portfolio. These discounts have been introduced to push sales and thus clear the inventory which is piling up at the company's dealerships post demonetization.

Reports suggest that various Mahindra dealers in the country currently have an inventory of over 40 days, while sales have slumped post the demonetization announcement on November 8. The company is one of the most affected automakers since majority of its sales come from rural and semi-urban areas. Moreover, with the end of the year approaching, Mahindra appears to be trying hard to clear its stocks to sell all 2016 manufactured models.

Though no official announcement has been made by Mahindra, it is being reported that the automaker has informed its dealer partners about the said discount through a video conference. Post this, the Scorpio has a discount of up to Rs. 50,000, while the Bolero is being offered with Rs. 67,000 price cut. The XUV500 has received a discount of up to Rs. 89,000, while the company's compact SUV offering - the KUV100 has up to Rs. 73,000 worth of discounts. The company's costliest SUV - the SsangYong Rexton, is being reported to have discounts of up to Rs. 2.71 lakh in some areas.

Both - new and used car markets have taken a major hit after the demonetization announcement. Automakers have even decided to cut production in order to avoid huge inventory pileups.

Source: ET Auto