Two-wheeler makers offer discounts to revive demand in key segments

Hero MotoCorp, Bajaj Auto and other two-wheeler manufacturers are offering big discounts on their entry and executive models in a bid to overcome weak demand and address inventory issues. The move is expected to reduce the stress caused due to a sharp increase in input costs in January.

The February numbers have been positive for some manufacturers. Sales of Hero MotoCorp were up 3.56% month-on-month (m-o-m) from 4,67,776 units, but negative for a few like Honda which reported m-o-m decline of 1.23%, down from 4,16,716 units. TVS reported m-o-m decline at under 5%, down from 2,05,216 units. Bajaj reported m-o-m decline of 5.38%, down from 1,57,404 units.

After the transition to BS-VI emission norms in April 2020, companies had started providing the supplies to dealers. Auto firms report the supplies to dealers as sales. Expressing their concern over slowing sales, dealers said whatever surge in sales they had seen so far was due to the easing of lockdown restrictions and the festive season.

The discounts are being offered on both the entry and executive segments as it accounts for 75% volumes, according to dealers. Hero MotoCorp, the two-wheeler market leader, is offering incentives of up to Rs 5,000 on select models, including premium motorcycles under exchange or loyalty programme to attract customers.

Bajaj Auto is offering consumer discounts of up to Rs 5,000 on its CT110 and Platina models. The offers are valid till March 15.

They also have a special offer for government employees, with Rs 2,000 discount on all motorcycles and Rs 5,000 discounts on all scooters.