Two-wheeler firms put festive offers on track | The Financial Express

Two-wheeler firms put festive offers on track

The demand, which has been poor in the last few years due to the high cost of ownership, has seen some improvement in the past few months.

Two-wheeler firms put festive offers on track
Hero MotoCorp, the country’s largest two-wheeler maker, is offering ₹2,000-4,000 discount on its scooters and certain motorcycle models, including the Xtreme, Super Splendor and HF Series. (Representative image)

By Swaraj Baggonkar

From flat discount, zero down payment to cash backs and free accessories, two-wheeler companies and dealers are pinning their hopes on the festive season to keep their demand momentum going.

The demand, which has been poor in the last few years due to the high cost of ownership, has seen some improvement in the past few months.

“Retail demand should recover in the upcoming festive season owing to the progressive easing of inflation, better monsoon progression in August resulting in a pick-up in Kharif sowing. The consumer confidence index is also at its highest levels post the pandemic,” a Hero MotoCorp spokesperson said.

Hero MotoCorp, the country’s largest two-wheeler maker, is offering ₹2,000-4,000 discount on its scooters and certain motorcycle models, including the Xtreme, Super Splendor and HF Series.

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“Consumers typically expect certain promotions/schemes/offers during the festive season and the industry will have commensurate levels of promotions/schemes during this festive season as well,” the Hero MotoCorp spokesperson added.

Honda Motorcycle and Scooter India (HMSI), the country’s second-largest two-wheeler maker, is giving away a ₹5,000 cash back in addition to a no-cost EMI on its range.

“Demand improved in the first quarter on the back of the marriage season and favourable monsoon. With a visible improvement in semiconductor availability, supply side headwinds are fading and demand is regaining momentum just before the festive season,” a HMSI spokesperson said.

TVS Motor Company, Bajaj Auto and Yamaha have also come out with offers, including discounts of up to ₹5,000, cash back offers of up to ₹3,000 and accessories, and free helmet, depending on the offers provided at the dealer level.

As per data shared by the government-controlled Vahan website and ICICI Securities, there was an 11% increase in two-wheeler registrations in August to 1.08 million. Two-wheeler sales in Uttar Pradesh, the country’s biggest two-wheeler market, fell in August. Other big market, Maharashtra posted a slight improvement in the same month.

“Rural markets are expected to rebound on a benign base, after being badly affected by floods and Covid-led slowdown leading to a particularly low demand for entry-level segments,” ICICI Securities said.

Though there has been a 39% improvement in two-wheeler sales between April and July this year compared to the same period last year, FY22 two-wheeler volumes were on par with FY12 volumes, as per data shared by the Society of Indian Automobile Manufacturers. After hitting a lifetime peak of 21.18 million units in FY19, domestic two-wheeler sales have been on a constant slide. The segment closed at 13.46 million in FY22.

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