As a festive offer for its new and existing customers, Honda Motorcycle & Scooter India (HMSI) on Thursday launched Honda Joy Club, a customer loyalty programme wherein Honda in alliance with multiple brands will provide intangible benefits to its customers across different sectors like hospitality, travel, apparel, entertainment, personal care and utility.
The company is currently offering the membership for the joy club worth Rs 299 for free till November 30.
While Bajaj launched 5-5-5 scheme for its customers last week offering free own damage insurance and five additional services, Honda has decided to keep away from any kind of discount war. “We do not want to join discount war because once it starts, the product value deteriorates,” said, Minoru Kato, president and CEO, Honda Motorcycle & Scooter India.
Adding to it, Yadvinder Singh Guleria, senior vice president, HMSI, said, “Last two months were not that strong from the market demand point of view, in such kind of scenario, there have been some reactions in the market. We are able to make our dealers understand, we need to be patient rather than being reactive and add more value to the customer which is more beneficial. Discount war is never ending. Any discount not only weakens brand value but also weakens all the stakeholders whether it is the dealer or the company.”
While the two-wheeler industry grew at 11.5% yoy in the first five months from April to August with April and June witnessing strong double digit growth, the overall industry witnessed muted growth in July and August at 3% due to transport strike in July, floods in Kerala in August and SC guideline mandating five years third party insurance for two wheelers. “Mandatory third party insurance policy has hit considerably the sales in September. While earlier insurance cost used to be 2.3% of the ex-showroom price, now it amounts to 10%,”added Guleria.
Honda is the market leader in scooter segment and commands third position in motorcycle segment after Hero and Bajaj Auto. Market sentiment has not been good so far, but we expect festive season to drive up the sales, added Minoru Kato.