Discount on Cars in India as Dealers Clear 2024 Stock Fast

Auto Companies Offer Record Discounts on Cars Across Major Brands: As the calendar flips to the second half of 2025, Indian car dealerships are under pressure to offload unsold vehicles from 2024. Weak buyer interest and rising inventory levels have triggered deep price cuts—some as high as ₹4 lakh—on older models. Surprisingly, even 2025 models are being offered at discounted rates, leaving little incentive for customers to consider last year’s stock.

₹5,500 Crore Worth of 2024 Cars Still Sitting in Stock

Across India, dealers and manufacturers are holding on to nearly 50,000 unsold cars made in 2024. The estimated value of this stockpile is over ₹5,500 crore. These vehicles include both electric and fuel-powered models, many of which fall into premium or slower-moving segments. In total, carmakers have over 6 lakh units in inventory—roughly two months’ worth of sales. Out of this, 6–10% are older 2024 models.

Big Discounts on Popular Models Across Top Brands

To move stock quickly, several automakers are offering major discounts:

• Hyundai: Up to ₹4 lakh off on the Ioniq 5 EV
• Volkswagen: ₹2.05 lakh discount on the Taigun Sport
• Tata Motors: ₹70,000 to ₹1 lakh off on Tiago EV, Punch EV, and Curvv EV
• Mahindra: ₹55,000 to ₹4.1 lakh off on Scorpio N, XUV3XO, XUV700, and XUV400
• Other brands like Renault, Nissan, Jeep, Citroen, and Skoda are also offering ₹1 lakh or more off models like Triber, Kiger, Meridian, Basalt, and Kushaq

These deals are being pushed through both company channels and dealer-level promotions, especially in urban markets where stock pressure is highest.

Dealers Point to OEMs for Overstock Woes

Car dealers are voicing frustration over manufacturer policies. According to the Federation of Automobile Dealers Associations (FADA), many vehicles are forced onto dealers despite poor demand. Often, these cars come in less preferred colors or outdated trims. Some dealers say that older models are dispatched well into the new year, creating confusion and affecting sales.

A southern India-based dealer noted that customer interest is low, and only a small number of enquiries lead to actual purchases. Analysts expect June sales numbers to drop for major carmakers like Hyundai, Tata, and Maruti Suzuki due to this trend.

Supply Chain Struggles Add to the Uncertainty

On top of poor demand, dealers are also facing supply challenges. Shortages of key components like permanent magnets have added another layer of complexity. Most dealers are now cautious about restocking too quickly, fearing they’ll be left with more unsold cars if demand doesn’t pick up.

What This Means for Buyers and the Industry

If you’re looking to buy a car, now might be the best time to grab a deal. With high discounts on 2024 models and even reduced prices on newer vehicles, customers have more negotiating power than ever. However, buyers should act fast—popular models with discounts may sell out quickly as dealers try to balance stock and avoid further losses.

For the industry, this phase reflects a difficult balancing act between production planning, shifting demand, and external disruptions. How companies adapt in the coming months will shape the auto market’s recovery for the rest of 2025.

If you’re planning to buy a new car, explore offers now. Massive discount on cars across all segments makes July 2025 a buyer’s market.