Cash discounts to compensate for auto price hikes in India

With the increase in car prices comes discounts. Most car companies are reported to be offering attractive discounts and freebies at the dealer's end thereby ensuring that sales do not peter off. For example, a mere hike of Rs. 2,000 on the WagonR petrol version is not deterring consumers to buy it when they are already availing a cash discount of Rs. 20,000 on its retail price.

Similarly other models like Zen Estilo are already getting a cash discount of Rs. 25,000 against its minuscule price rise of Rs. 1,000. It's other money-spinning model, Alto is also available with hefty discounts. Plus there is one year’s insurance thrown in free.

Also, Tata Motors are offering a cash discount of Rs. 20,000 on Indica while General Motors is offering an air-conditioned base version of the Spark at a 'special price' of Rs. 2.89 lakh (ex-showroom Delhi), making it nearly Rs. 30,000 cheaper.