Amid weakening demand and rising inventory, leading automakers Tata Motors and Mahindra & Mahindra (M&M) on Tuesday announced heavy discount on purchase of their select and popular SUVs . Mahindra XUV700 approaches its three-year anniversary in the Indian market, M&M has announced celebratory discounts of over Rs 2 lakh on its range-topping AX7 variants for the next four months, TOI reported.

Effective from Wednesday, the AX7 range starts at Rs 19.49 lakh, down from Rs 21.54 lakh Mahindra celebrated the production of the 200,000th unit of the model, just three years after its debut, making it one of the most popular cars in the market.

Source: TOI Tata Motors, too, as part of 'King of SUVs festival' slashed prices by up to Rs 70,000 on select models along with benefits of up to 1.4 lakh on its range of fossil fuel and EV SUV variants.

As per media reports, the automaker has revised the starting prices of SUVs Tata Harrier and Safari.

Notably, these revisions come a day after Uttar Pradesh government waived registration fees on strong hybrid cars, effectively reducing on-road prices by up to Rs 3 lakh.

Muted sales India recorded just 0.73 per cent annual growth in its auto retail sales in the month of June, owing to the delayed monsoon in certain parts of the country.

Moreover, PV and CV sales fell by 7.18 per cent and 12.42 per cent MoM, reflecting poor market sentiment.

"Inventory levels have reached an all-time high, ranging from 62 to 67 days.

Despite improved product availability and substantial discounts aimed at stimulating demand, market sentiment remains subdued due to extreme heat resulting in 15% less walk-in’s and delayed monsoons," FADA had said.