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Car Discounts Rise Amid Record Inventory And Squeezed Dealer Margins
M
Moneycontrol•08-10-2026, 10:01
Car Discounts Rise Amid Record Inventory And Squeezed Dealer Margins
- •Vehicle discounts and promotional incentives have increased recently even as automakers raised prices multiple times.
- •Dealer inventory reached around 45 days of stock at the end of September, the highest level since November 2025.
- •Rising unsold stock is increasing financing costs and eroding profit margins for car dealers ahead of the festive season.
- •Major automakers including Maruti Suzuki and Tata Motors implemented price hikes ranging up to Rs 30,000 this year.
- •Electric vehicles and strong hybrids are seeing some of the largest consumer benefits and discounts in the market.
Key Questions Answered
According to the Federation of Automobile Dealers Association (FADA), dealers were carrying around 45 days of stock at the end of September, which is the highest level of inventory since November 2025 and has increased financing costs.
Automakers have raised prices two to four times since January. For instance, Tata Motors increased prices by up to Rs 25,000 on October 1, and Maruti Suzuki raised prices by up to Rs 30,000 in August.
Electric vehicles and strong hybrids are seeing some of the largest incentives, with Tata Motors offering benefits up to Rs 3.35 lakh on the Curvv EV and up to Rs 2.75 lakh on the Harrier EV.
