Demonetisation has driven up discounts for cars, which are running anywhere between 10% and 15%, making December a good time to buy a car. Dealers looking to clear their inventory before the year is out are willing to fork out more discounts than they do during Diwali when they offered around 7-9%. Nevertheless, even there is a pick-up in volumes, the sale of passenger cars in 2016 may fall short of the targetted three million units.

Maruti Suzuki and Hyundai have both increased discounts across most models including popular ones like the Elite i20 hoping these will tempt buyers. Discounts for the petrol variant of Celerio are up at R19,000 – R20,000 in the top metros; during Navratri and Diwali these were smaller at around R12,000. The discount on the Swift is now R15,000, up over R6,000 – R9,000 a couple of months back. Even Maruti’s popular compact sedan, Dzire, now attracts a discount of R10,000- R11,000, twice the earlier levels of R5,000 – R6,000.