Automobile: Tata Motors has announced price reductions of up to ₹2 lakh on select SUV models as part of its festive season promotions, aimed at boosting demand in the slow passenger vehicle (PV) market.

This strategy is intended to counteract a 3.46% decline in passenger vehicle sales from the previous month and a 4.53% decline compared to the same period last year, according to data from the Federation of Automobile Dealers Associations (FADA).

The discounts will be available across all variants of popular Tata Motors SUVs, including the Harrier, Safari, and Nexon, with the exact amount varying by location and dealership.

In addition to price cuts, customers can also enjoy exchange bonuses, cash discounts, and additional perks such as extended warranties and free accessories. These offers are available throughout October, coinciding with major festivals, including Diwali, to encourage consumer spending during the critical holiday season.

“Inventory levels have reached concerning levels, with stock days now extending to 70-75 days. Dealerships collectively hold 780,000 vehicles, valued at ₹77,800 crore. Despite the slowdown, passenger vehicle manufacturers continue to increase shipments to dealers month-on-month, worsening the situation,” said Manish Singhania, president of FADA.

A FADA statement also highlighted emerging challenges as the festive season approaches, which could further impact auto sales.

“India recorded 16% above-normal rainfall in August, with more heavy rain expected in September, as per the India Meteorological Department (IMD). This excessive rainfall poses a risk to crops nearing harvest, especially those sown in late June. Poor agricultural output could directly affect rural sales, reducing purchasing power in key markets.”

Additionally, the Shraddh period in September, considered an inauspicious time for purchases, may lead to a temporary dip in sales, adding extra pressure on dealers who are already managing high inventory levels.