Tata Motors, BYD, and Mahindra cut Prices for their cars - Cars to become Cheaper in India

Throughout the whole of 2023, we have seen an immense hike in the market of Indian Automobiles. There was obviously, a few valid reasons behind that rise. But, ultimately, it made things hard for us, consumers. Even in the Used car market, there was an unexpected inflation in the product pricing. 

So, as it is 2024 now, will it be the same in 2024, as well? Do we have to tighten our belts even more due to the possible inflation? To be honest, NO! We do not have to care about it anymore, as 2024 will be a good year for us, consumers. The car manufacturers will offer huge discounts on their products. Hence, let us understand this whole matter by getting into today’s topic of Why Cars will get huge Discounts in 2024. 

Why did Car prices increase in 2023?

One car’s price depends on a lot of factors. These factors are directly relevant to the production of the car and the economic condition of particular countries around the world. Even though 2023 was not the prey of the coronavirus, it still had to take over all the stress created in 2022 and 2021, during the COVID-19 pandemic. Therefore, this affected a lot of aspects of the business world, as 2023 became a stressed member. 

This affected the chain of production. We started to see a lot of inflations in various raw materials, logistics, regulatory changes, etc. Moreover, during the initial period of 2023, the chipset issue in the Automotive world also existed, though, it was not as much as it was in 2022, but it was in its resolving period. The labor charges were also high for obvious reasons. Moreover, there was a lot of backlog being created at that time, too, as the demand was increasing rapidly having low supply. 

Low supply, further, created the issue of fulfilling demands. This made car makers benefit the situation, and raise the prices of almost all of the cars by a high margin. Moreover, this rise in prices of cars also made the already overpriced cars to be even more expensive. 

At last, this commodity price inflation was a result of unfortunate COVID circumstances that created a ruckus for the car manufacturers and high demand post-COVID. Thus, we saw a major price increase in the Automotive Industry in India. 

Why Cars will get huge Discounts in 2024?

So, after a year, is the situation the same? Well, fortunately, no. The whole situation is gradually turning to our side. The prices have started going down this year compared to the previous year. The supply chain has more than enough stock because of which the prices have been brought down to compensate for cramped stockyards. 

Previously, a study stated that almost 60,000 cars are yet to be sold and are standing at the stockyard, which tells us that the demand for vehicles has decreased significantly in India having increased prices of cars, fuel, etc. 

There is even more good news in the EV sector. The whole initiative of the Government, which is influencing citizens to switch over to EVs, in 2024, the Incentives, we get on buying an EV, will also be heavily increased in order to bring down the prices even more. 

About the Used car market, as the New car market will see growth in its customer base, and will see growth overall, the Used car market will automatically come down in terms of prices. We will get to see more convincing prices for Used cars in 2024, itself. 

Hence, we are seeing brands like Tata Motors and Mahindra reducing the prices of their cars heavily to clear their unsold stock by attracting customers with low prices. Tata Motors has deducted almost ₹1.2 lakh rupees on some variants of the Harrier, and Safari has gotten even more till ₹1.4 lakh rupees. Whereas, Mahindra has reduced prices of its XUV 7OO up to ₹2 lakh rupees on some variants of AX7 specifically. 

Well, if these price deductions sound a lot to you, then, you should not hear what BYD has done. BYD’s Atto 3 facelift has been launched in India, and the price of this facelift has been deducted by more than ₹9 lakh rupees. These deductions, as said, are specifically made to empty out the stockyards.