It’s not just about heavy discounts on cars anymore. Two-wheeler makers too have started offering attractive schemes to woo customers in a slowing market.
The offers include low interest rates, exchange bonuses and free insurance, though no one’s offering a cash discount yet.
Honda Motorcycle and Scooter India, for one, has launched an attractive finance scheme on its entry-level bike Dream Yuga, with a low downpayment of Rs5,999 and an EMI of Rs1,758. The scheme offers benefits of Rs3,600 over the company’s previous scheme.
Other companies have their own schemes going already.
For example, Hero MotoCorp dealers in Rajasthan are offering exchange bonus or free insurance on some of its two-wheelers.
Low interest rates are also on offer, said a North-based dealer of the company.
“The company is not directly giving these discounts. In such cases dealers take a hit,” said another dealer.
Bajaj Auto, on the other hand, is offering a 7.99% interest rate for one year or 8.99% for 1.5 years on its Discover models through Bajaj Finance, said a Mumbai-based dealer.
But Bajaj Auto and Hero MotoCorp denied offering such schemes.
“Hero is not offering any discount scheme, nor has asked its dealers to do so. In fact, as a strategy, we have not given any price-offs or freebies for several years now. Instead, our focus has been on building our brands and enhancing customer experience,” said a Hero MotoCorp spokesperson.
An analyst said more discounts are expected in the next 1-2 months.
“At the moment, retail is very slow for all segments. And given that there are no catalysts to bring customers back anytime soon, year-on-year volume growth for the next few months could remain in negative territory, before the low base of second half kicks in” said Ashish Nigam, analyst with Antique Institutional Equities.
According to Society of Indian Automobile Manufacturers, two-wheelers registered a growth of only 3.85% during April 2012-February 2013. Scooters grew 16.19%, while motorcycles grew just 0.9% during the same period.