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Automobile cos offering feebies and discount will this boost sales?

Created by : Farah Fathima, Commercial Manager, Leading Auto Co.  | 07 14 2011 06:33:27 +0000
Industry : AutomobileFunctional Area : Consumer Sales(Sales & Marketing)
Keywords : cars automobile maruti honda petrol price alto discount on automobiles
Activity:  334 views;  last activity : 07 14 2011 11:35:59 +0000
Honda gives a limited period offer with a waiver of 1.7 lakh on Honda Jazz nand Maruti is giving rebates of some Rs 50,000 on Alto, , WagonR and Estilo that together account for half its sales. The sales were in boom and then suddely went down very badly. They say that they are just reacting to the market and this is only till sales get back to full boom again. Do you think this will help them to have better sales?
 
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Yes an offer as good as this should work and if this too does not work then I do not see anything else than reduction in Petrol and disel price working (which is just not possible). Sometimes I feel these auto companies should object the increasing rates. Perhaps it will have more impact.
By Farah Fathima, Commercial Manager, Leading Auto Co.  07 14 2011 06:33:27 +0000
 
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Now with high petrol & diesel prices and road congestion and to top it all coverage of metro in cities there is a drop in demand which may see marginal rise in total sales with the competition is geting hotter day by day freebies will remain constant for some time at least. 
By Rathin Deb, Freelance Retail Consultant  | 07 14 2011 11:35:59 +0000
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oh yes!!! such lucrative offers ...specially to own a HONDA!
By Rohit Thakur, Electrical Engineer-Industrial, Quality Engineering and Software Technologies  | 07 14 2011 11:24:27 +0000
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Automobile industry is very fast growing. If you analyse the past 2 years data, you will find the high growth in two-wheeler as well as four wheeler. Many factors are available as mentioned by Mr.Mohammad sir. Especially the sales of automobile in festival always show high. People perception is changing that they feel bike is good and convenient in petrol, some bikes are became status for young people, Four- wheeler are also became for status symbol as well as per capita income is also going high,etc..And the main thing is competition is also going high. Every 15 days or month , company are introducing new economy model because they know very well about current automobile industry....This promotional scheme will give extra or additional advantage for company and also boost sales..
By Virag Shah, Confidential  | 07 14 2011 09:53:03 +0000
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Thanks,Farah for referral.I support your argument that promotional incentives help the sales, but temporarily.There are many factors influencing the sales,like Bank loans,Interest, fuel prices,  incentives(Employees/companies) ,family requirement,utilization etc. 
By Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer  | 07 14 2011 09:33:20 +0000
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Honda gives a limited period offer with a waiver of 1.7 lakh on Honda Jazz nand Maruti is giving rebates of some Rs 50,000 on Alto, , WagonR and Estilo that together account for half its sales. The sales were in boom and then suddely went down...
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