To cut BS III stocks Hero MotoCorp, Bajaj Auto, others offer spectacular discounts of up to Rs 22,000

By: | Published: March 31, 2017 6:51 AM

With around 6.71 lakh two-wheelers out of over 8 lakh BS III vehicle impacted by the Supreme Court’s ban on sale and registration of such vehicles from April 1, major two-wheeler manufacturers began offering discounts of up to `22,000 on their BS III models to liquidate stocks over the next two days.

In addition to heavy discounts, dealers will keep their showrooms open late till 10 pm on March 30 and 31.

With around 6.71 lakh two-wheelers out of over 8 lakh BS III vehicle impacted by the Supreme Court’s ban on sale and registration of such vehicles from April 1, major two-wheeler manufacturers like Hero MotoCorp, Honda Motorcycle and Scooter India (HMSI) , Bajaj Auto and Suzuki Motorcycle began offering discounts of up to `22,000 on their BS III models to liquidate stocks over the next two days. Dealers said that such heavy discounts were unheard of.

In addition to heavy discounts, dealers will keep their showrooms open late till 10 pm on March 30 and 31. However, dealers said that despite such measures, so far they have not been able to attract customers because they seem wary to buy products which have been banned by the court.

“These are unheard of discounts ever in the two-wheeler industry,” Federation of Automobile Dealers (FADA) past president and director, international affairs, Nikunj Sanghi said. Asked what actions dealers were taking following the apex court verdict, he said: “Our energy is focused on selling as much stock as possible before the deadline. Our people are calling up potential customers informing them about the offers.”

 

After two-wheelers, CVs have the next highest inventory at 97,000 units.

Dealers of Hero MotoCorp said that they are offering cash discounts in the range of Rs 6,500 to Rs 15,000 on models like Glamour, Super Splendor, iSmart, Deluxe and others across the country depending on the stock with dealers. The price of these motorcycles generally range between Rs 55,000 and Rs 65,000. On scooters, the discounts are in the range of Rs 14000 to Rs 20,000 where average the price range is between Rs 45,000 and 60,000.

HMSI, which is the largest producer of scooters, on Thursday issued advertisement in newspapers offering cash discount of Rs 10,000 across vehicles. Dealers though have increased the discounts levels in the range of Rs 12,000 to Rs 26,000 for best-selling scooter models Activa and Dio.

“We have sold most almost half of our stock today since HMSI is not known to offer huge discounts. Such high discounts on Activa is not even available during the festive season. We expect to be left with some inventory and it is for the company to decide what to do with it,” said a Honda dealer in Maharashtra.

“Though we are offering discounts, most of the customers are apprehensive of buying these BS III vehicles. Discounts on motorcycles generally range between Rs 3,000 and Rs 4,000, and we have almost tripled it. Though sales are taking place, it is less than our expectation,” said another Hero dealer in West Bengal.
Dealers of Tata Motors and Ashok Leyland said that they have also increased discounts in the range of Rs 50,000 to Rs 300,000 or more, depending on the vehicle.

JW Player – Is The Reliance Jio Rs 100 Cashback Really Worth The Offer?

You may also like to watch this video

Observing that the health of the people was “far, far more important” than the commercial interests of the manufacturers, the Supreme Court on Wednesday said that automobile firms have declined to take “sufficient proactive steps” despite being fully aware that they would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition