The Indian Auto industry saw the biggest ever discount offer made a car company when the German carmaker, Volkswagen, announced a discount of Rs. 25,00,000 on its luxury sedan Phaeton. The decision by the company is an attempt to boost the sales for the sedan which have remained low since its launch. With a price tag of Rs. 75,00,000, the Phaeton competes with cars such as Mercedes S class, BMW 7 series and Audi A8 in the global market.
Since its launch in January 2010, Volkswagen has sold only 53 units of the Phaeton, a number significantly below expectations. Thus, by offering large discounts, the company hopes to encourage customers into buying the car. The dip in sales for the Phaeton coincides with current slowdown in the industry annual sales growth. Similar steps have been taken by other carmakers. For instance, Audi is offering Rs. 3,00,000 as discount on its existing stock of A6 sedans.