The four wheeler and two wheeler manufacturers are offering 100 percent finance facility as a result of decision of scrapping the Rs 1000 and Rs 500 notes by Government of India.
Automotive industry experts stated that the sales in the showrooms have come down to 20 to 25 percent due to demonetisation in the country. The conversion rate from enquiries to sales have also come down.
In the national capital Delhi, the registration of new vehicles has dropped as much as 70 percent between November 9 and 13 in the wake of currency ban.
Senior Vice-President, Sales & Marketing, Honda Cars India. Jnaneswar Sen said, "The variation in decline in footfalls is huge. In upcountry areas, where consumers are dependent on the agricultural economy, the effect is more severe."
To lure customers Honda has made an agreement with HDFC Bank, Axis Bank and ICICI Bank to offer 100 percent finance facility on its vehicles.
Hyundai is also offering 100 percent finance on the on-road price of its vehicles through HDFC, Kotak and Axis banks. Rakesh Srivastava, Senior Vice-President (Sales & Marketing) at Hyundai Motor India said, "In addition to this, we are lining up aggressive offers to excite customers to not hold back purchases."
Hero MotoCorp showrooms have also reported a drop in sales by 15 percent on average of first two days of currency ban. The firm believes that sales will normalise in the coming days.
A Hero MotoCorp dealer said, "We are also not charging on credit card payments to give some comfort to customers." Many dealerships are also making using of E-wallet services to accept bookings.
The two-wheeler market is more cash-driven specially in the rural market. So, manufacturers are making tie ups with various online platforms such as Paytm to offer alternate payment options to the customers.