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Old 7th December 2013, 21:30   #16
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013


For example, a well-known European brand has 28,000 cars in its factory and dealerships. Dealer sources said the festival season wasn't good enough to clear out all inventories and November has been a sluggish month.


It definitely is VW. The other Germans would not be carrying 28000 cars. And Fiat would hardly have that kind of inventory. I don't think any manufacturer would do a negative reduction so it has to be free insurance, road tax etc etc. And one understands there is a slew of launches slated for 2014.
Good for the buyer.
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Old 7th December 2013, 22:47   #17
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Have any manufacturers started cutting down production shifts yet?

If only manufacturers realized that a lot of Indians now look at post-sale support and service as well, they'd probably have better sales figures.

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Originally Posted by swiftnfurious View Post
I know it's wishful thinking - But will any manufacturer do a negative revision and force others to go the same route?
They might; but eventually, no one wins a price war. So, they'll look at recovering that amount elsewhere.
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Old 7th December 2013, 23:07   #18
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

It indicates that there are more cars than there are buyers. So can we anticipate that there can be more offers for an year end clearance sale off?
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Old 8th December 2013, 00:38   #19
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

VW or whichever brand it is, their dealers may sell it at massive discounts next year to clear off the inventory, but from a customer perspective, I don't find it a big deal when I am offered a car manufactured some 12 or 15 months ago, with a price discount. Will they ever reveal in those discount Ads that the models offered with discount are this much old? I don't think they will ever do that. And unless some well-informed customers ask specifically for the VIN number during PDI, majority of those who buy will never get to know this before purchase. So whoever has planned to purchase a european brand car next year, it will be better to keep an eye on the VIN number during PDI.
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Old 9th December 2013, 13:35   #20
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

There's only so much you can screw a customer over before your actions catch up with you. The customer will always have the last word, and it's ultimately the customer driving the business, not the manufacturer. It's time the perennially screwed-over Indian customer made that statement with their wallets and greedy manufacturers bled RED (ink, of course).

Every manufacturer in this mess deserves every bit of the misery they're in right now, and I sympathize with none of them. Cars that have stayed the same over the last half-decade (barring a few cosmetic mods that add almost nothing to the manufacturing cost, when volumes are considered), DO NOT deserve to be sold at 30-40% (sometimes higher) mark-up of the original launch price.

Last edited by Chetan_Rao : 9th December 2013 at 13:36. Reason: Spelling and grammar
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Old 9th December 2013, 13:46   #21
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Interesting developments. Few manufacturers trying hard to meet the demands while others facing the heat. If this continues, I hope we get to see banners like - "Buy 2, get 1 Free".
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Old 9th December 2013, 14:00   #22
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

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Originally Posted by GTO View Post
99% probability, this is VW. The grapevine insists they've been producing a lot more than actual demand. Loads of dealers still have cars manufactured in the first half of 2013.
And they (read VW) unfortunately do not want to sell their cars. I have been after the VW dealer here in Hyderabad for Polo TSI, followed up more than thrice to get the car home for a test drive and no response. Looks like they are more happy not selling cars and I have dropped the idea to purchase polo
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Old 9th December 2013, 14:20   #23
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

100% with cyberdoctorind. And to exacerbate things more, the cost of the various variants is very high for what they include as standard equipment. For such a marquee to have NO airbags or ABS in the lower variants is a crime IMHO.
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Old 9th December 2013, 14:58   #24
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Manufacturers are cutting down on production big time, all manufacturers are planning to liquidate stocks at their dealerships rather than focusing on new vehicle billing as they know VIN-13 vehicles are difficult to sell from next month.

Even so then these VIN-13 cars will be sold next year with hefty discounts, buying a VIN-13 vehicle during Jan-14 can fetch equal amount of discount if you are a smart bargainer and at the same time you also have the advantage of registering your vehicle in a new year.
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Old 9th December 2013, 15:51   #25
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Expect VW group to come up with another innovative marketing campaign (remember this one (Times of India? Nope, VW of India. EDIT: Vibrating ad on 11 Sept 2012 (Pg 26)))
Perhaps that will help them get rid of some of the stock if the dealers co-operate with the company.
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Old 9th December 2013, 16:56   #26
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

And the discounts have started rolling in from VW.

Here's the mailer I just received from VW.
Attached Images
 
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Old 9th December 2013, 18:18   #27
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Today visited Lathangi Ford to do a reality check on the offers for Figo and Classic, met Mr.Athiq Khan during the process. I had spoken to him last month about exchanging my Beat Diesel for Classic, today got my Beat evaluated, they offered 2.4 lakhs for my Beat which has completed 10.5k km and is 7month old. I asked for a White or Silver color Classic, Mr. Khan said only 1 grey color and 1 white color which is on display are remaining on which offers are valid. They are luring customers with INR 69,000 offers but in reality they are undervaluing cars for exchange offers to make up for the money lost on discounts. This attitude of dealers is a major reason for the declining car sales.

Last edited by deehunk : 9th December 2013 at 18:19.
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Old 9th December 2013, 18:21   #28
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Quote:
Originally Posted by speedmiester View Post
And the discounts have started rolling in from VW.

Here's the mailer I just received from VW.
Is it a real deal? Is it like, all that we need to pay is just half the price and the rest is discount? Can't believe that. There may be some fine print that follows. like paying the rest of the amount after 1 or 2 years in installments or something like that.
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Old 9th December 2013, 19:26   #29
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

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Originally Posted by VinodDevil81 View Post
Is it a real deal? Is it like, all that we need to pay is just half the price and the rest is discount? Can't believe that. There may be some fine print that follows. like paying the rest of the amount after 1 or 2 years in installments or something like that.
It's not a real deal: https://www.facebook.com/Volkswagenindia

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Drive home a Polo or a Vento by paying just 50% of its price. Pay the rest a year later as one payment or easy EMIs over 3 years.
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Old 10th December 2013, 21:58   #30
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Default Re: Auto inventory pile-up at Rs 20,000 crore, post Diwali 2013

Quote:
Originally Posted by GTO View Post
99% probability, this is VW. The grapevine insists they've been producing a lot more than actual demand. Loads of dealers still have cars manufactured in the first half of 2013.
I have experienced their "world class" sales process. I'd only say they deserve it. Even the doorman in a Maruti showroom understands the need to move inventory better than the sales manager in a VW showroom. When I was in the market, I visited them twice and had some discussions. They don't negotiate, discuss or even explain in detail. If they expect customers to fawn and swoon just looking at the VW badge, I am sorry but they are mistaken.

Skoda sales in Hyderabad, for example, is a LOT better, more aggressive, better at follow up and use every technique in the book. I'd speculate it was VW (as well).
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