[Representational Image]Reuters

India's economic slowdown has made an adverse impact on industries, especially the automotive sector, where several manufacturers are forced to slash down car prices due to an unprecedented sales decline.

The economic downturn and liquidity squeeze has forced people from purchasing new vehicles. The bankruptcy of Infrastructure Leasing & Financial Services Ltd (IL&FS) has a huge impact over the automotive sector due to which the sales have declined and banks are not extending credit to customers and non-banking financial companies (NBFC).

The ownership costs and insurance rates have also increased from 2018. The carmakers have decreased vehicle prices to lure in more customers. Car manufacturers including Maruti Suzuki, Skoda, Renault and Tata have seen a major decline in the passenger vehicle segment and has decreased the prices for their cars due to the economic slump.

Maruti is offering hefty discounts on its vehicles ranging from Rs 40,000-Rs 100,000 to boost sales. The company is also offering free 5 year/1 lakh km warranty on its BS-IV diesel models of Swift, Swift Dzire, Brezza and S Cross.

Offering substantial benefits to its customers Tata Motors gives a discount of Rs 1.5 lakh on its SUV-Hexa and benefits of up to Rs 1.15 lakh on hatchback Tigor. The company also offers benefits up to Rs 50,000 on its mid-size SUV Harrier and up to Rs 75,000 discount on hatchback Bolt. Tata offers several good deals in its other car models also.

Honda is offering cash discounts up to Rs 4 lakh on its fifth-generation Honda CR-V. It is also offering savings up to Rs 1.2 lakh on the 7-seater BR-V and up to Rs 70,000 on their flagship sedan-City.

Toyota dealerships are offering benefits of up to Rs 60,000 on the MPV-Innova Crysta and up to Rs 1.25 lakh on its SUV-Fortuner. Toyota is also offering benefits of up to Rs 28,000 on its mid-size sedan Etios.

Hyundai Motors has also reduced prices for their cars with cash benefits up to Rs 2.05 lakh on Elantra and discounts up to up to Rs 65,000 on Verna. They are also giving discounts up to Rs 55,000 on the mid-size SUV Creta and up to Rs 50,000 on its hot-selling hatchback i20.

Skoda India has also reduced prices for some models including their flagship SUV-Kodiaq, Rapid and Superb. Kodiaq is now priced at Rs 32.99 lakh for the base variant with a discounted rate of Rs 2.38 lakh.

The top-end variant of Skoda Rapid-Style, petrol-manual and the mid-variant (Ambition) diesel-manual are now priced at Rs 1.16 lakh and Rs 1.3 lakh lower. The price for Superb has been cut down by Rs 1.80 lakh for the base petrol-automatic Style trim which is now available at Rs 25.99 lakh.

Renault India has cut down prices for its SUV segment vehicles Duster and Captur with a discount up to Rs 1.10 lakh. Renault is also offering benefits up to Rs 5,000 for its hatchback Kwid.