Two wheeler year-end discounts flat, riding on inventory liquidation

The recent festive season saw robust growth in two-wheeler sales, reaching 2,893,107 units, marking a 20.71 per cent increase compared to the previous year

Year-end discounts in two wheelers are ranging between Rs 3000 and 10,000, relatively at similar levels compared to last year, riding on inventory liquidation during the festival season. 

Manish Raj Singhania, president of Federation of Automobile Dealers Associations of India (FADA), said, “Currently, with comfortable inventory levels, the promotional schemes are relatively reduced. Last year, the industry faced significant challenges, and two-wheeler dealers were grappling with sluggish sales.Consequently, the discounts were not at pre-Covid levels. There were robust schemes before the pandemic, but the post-Covid scenario never allowed the industry to reach a point where manufacturers or dealers could offer substantial discounts. Additionally, the industry’s transition from on-board diagnostic-1 (OBD-I) to OBD-II norms for two-wheelers in April faced supply challenges, with original equipment manufacturers (OEMs) struggling to meet the market demand.”

The recent festival season saw robust growth in two-wheeler sales, reaching 2,893,107 units, marking a 20.71 per cent increase compared to the previous year.

Rural areas played a pivotal role in driving this surge, contributing significantly to the overall rise. The average inventory for two wheelers spans 32-37 days in November, as reported by FADA.

As the festival season concludes, leading two-wheeler manufacturers including Bajaj, Hero, Honda, Yamaha, and TVS Motor are rolling out enticing discounts ranging from Rs 3,000 to Rs 10,000 across popular models.

Bajaj, having sold 274,181 units in November, offers discounts on models such as the Pulsar P150 and Pulsar 150.

Dealers in Mumbai are offering up to Rs 5,000 off on all models.

Additionally, Bajaj provides discounts of Rs 8,500 and Rs 7,000 on Pulsar 125 and Ns 125, respectively.

“Our discount, coupled with the company's discount, will be very helpful for our customers,” an executive at a Mumbai-based dealership of Bajaj said.
 

Hero, which sold 802,234 units in November, has partnered with Flipkart to offer cash discounts and no-interest offers.

Discounts on scooter models range from Rs 5,000 to Rs 7,000.

Hero is also extending a spectrum of discounts on Flipkart, including up to Rs 3,000 on 125 CC models like Glamour and Super Splendor, Rs 2,500 on HF Deluxe, and Rs 2,500 on scooters like Zoom, Pleasure, and Destiny. Customers using bank cards for purchases can avail an additional discount of up to Rs 5,000.

Speaking on this, a Mumbai-based dealer said, “Due to the tie up with Flipkart, the company has not offered many schemes to us. However, for models like the Xtreme 160R 2.0, the discount is going up to Rs 10,000. Models like Spender and Passion remain unaffected due to their strong demand.”

Yamaha provides discounts on models such as FZ-X and FZ-S V3, at Rs 5,000 and Rs 3,000, respectively. Scooters in the X series receive discounts ranging from Rs 2,000 to Rs 3,000. FZ-S V4 and FZX see discounts of up to Rs 3,000 and Rs 5,000, respectively, accompanied by accessories like shirts and helmets.

TVS Motor, which sold 365,295 units in November, offers a discount of up to Rs 4,000 on the Apache RTR for customers owning an existing old model bike of any brand.
 

Honda, having sold 512,865 units in November, is providing instant bonuses of up to Rs 12,800 on purchase of any new Honda Bigwing model. It is specifically targeting 18-25 year-olds.

 

Retail numbers for 2 wheeler
Two wheeler OEM	September	October	November
Bajaj	1,49,314	1,78,717	2,74,181
TVS	2,28,852	2,51,435	3,65,295
Hero	3,51,781	4,17,750	8,02,234
Honda	3,48,899	4,02,138	5,12,865

Source: FADA