KOCHI: Middle order cars spanning across models and companies are going on a spree with free insurances, exchange offers and packages. The fear of customers keeping away from the automobile industry owing to an escalation in fuel prices and also an increase in interest rates on loans may be behind some of these developments. While high-end vehicles might still be safe from an immediate impact, middle order cars have already started feeling the brunt, says Kiran from Tata Motors. "The growth rates in the middle order cars are not encouraging. In Indica and Vista, the growth rate is almost zero this year. Nano does note pretty high growth. But that can be because the car is just introduced in the market," said Kiran. Tata Motors and Hyundai are offering free insurances for most of their vehicles. There are also special exchange offers on the fore. "There has been some decline in the growth rate in the last 6-8 months, mostly owing to fuel price hike and the interest rates. But since the price hikes have mostly hit petrol rather than diesel, it hasn't been too bad for us as yet," says Kurian of Concord.Maruti has also been in the forefront of exchange bonuses and discount packages. Maruti has put up a discount of Rs 48,000 on its Wagon R. But the company denies that the offer has anything to do with reduction in demand. As the fuel price rise is likely to last, some say that the customers would get accustomed to the rise while others point out this might just be the beginning of the end of individual mobility.
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