Two-wheeler companies are offering discounts, exchange bonuses and cheaper finance schemes on bikes, scooters and mopeds as demand slowdown starts to bite into retail sales.
These offers are aimed at reviving demand weeks ahead of the festive season even as inventories with dealers are climbing to unsettling levels. Brands such as Hero, Honda, Bajaj, TVS, Suzuki and Vespa are enticing customers with a host of offers.
Hero MotoCorp, India’s largest two-wheeler maker, is giving away cash bonus worth Rs 10 crore on its range with assured cash bonus on every advance booking for delivery on August 9.
The Delhi-based producer of Splendor and Maestro is offering benefits of Rs 6,500 per two-wheeler along with zero percent interest, low down payment and processing fees. Up to Rs 5,000 cashback on select credit and debit cards can be had when buying a Hero MotoCorp two-wheeler.
A similar finance offer is doled out by Honda on the Activa and the SP125. Buyers can benefit from the 5 percent cashback up to Rs 3,500 on the purchase of the Activa 125 if using an SBI Credit Card. Honda promises no hypothecation, no documentation and no down payment on the offer.
Celebrating 20 years of the Pulsar brand, Bajaj Auto, India’s third largest two-wheeler manufacturer is offering a savings offer on all Pulsar models. Consumers can benefit from up to Rs 3,000 (on the RS200) savings on the Pulsar. A few days ago, Bajaj slashed the prices of the Dominar by more than Rs 15,000.
Dealers of TVS Motor Company are offering an exchange bonus of Rs 3,000 along with a cashback of Rs 1,000 to Rs 4,000 depending on the model. In addition, there will be finance options for all vehicles with a low down payment.
Suzuki Motorcycle, the second biggest Japanese two-wheeler brand in India, has rolled out a monsoon offer. The maker of Intruder and Access 125 models has rolled out a corporate offer of Rs 3000, exchange bonus of Rs 5,000, no-cost EMI of up to 12 months, free insurance up to Rs 10100 and a low-cost EMI of 5.99 percent.
Stylish Italian brand Vespa is offering finance from HDFC with EMI starting at Rs 1,999 and 100 percent loan to value funding. This is in addition to free roadside assistance, free first-year service labour and 5 years warranty.
Demand for two-wheelers has not picked up as generously as expected post lifting of the lockdown by more than 20 states. As per the apex dealer association, the Federation of Automobile Dealers Association (FADA), inventory, at the end of June, stood at 25 days while retail volumes grew by just under 17 percent compared to June last year. The Street was expecting June volumes to rise on expected pent-up demand.
Speaking to Moneycontrol recently, Soumen Ray, chief financial officer, Bajaj Auto, said: “Demand has not come back as fast as we would have believed, but these are early days. Let us look at it by the end of July. But yes, demand is not looking as strong as last year.”