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Two Wheeler Companies Avoid Discounts For Diwali Season
Atul Gupta, India vice-president (marketing & sales), Suzuki Motorcycle said that there is no scope for discounting or price changes and the market has been buoyant and Suzuki has been struggling to meet the demand, leaving no scope for discount. Customers are willing to offer premium for prompt deliveries. Hero Honda, which sells every second two-wheeler in the market, has stopped freebies, and will not undertake any promotional activity during Diwali, except for launching new products.
Anil Dua, senior vice-president (marketing & sales), Hero Honda stated that, Hero Honda has not been giving any price-off and discounts for the past three years and has decided to strategically invest in brand building, and have already kicked-off our festival initiatives with the launch of Super Splendor in August. He added that there will be a couple of more exciting launches in the run-up to the festivals and Hero Honda already started a slew of on-ground initiatives involving customers, dealers, schools and even rural areas and launch campaign around the Commonwealth Games to add fun and excitement to the festive season.
Bajaj Auto, India's second largest two-wheeler maker has also done away with discounting regime and it has even stopped rebates on financing options such as zero percent finance, which was its hallmark till few years back. Milind Bade, head marketing, Bajaj Auto stated that Bajaj is investing in brands and so there is no scope of discounting and the company believe that its products are aptly priced and the customers are happy without any such discounting.
The two-wheeler market has been growing without any promotions and till few years back, the companies had been offering free mobiles with talktime, iPods, gold coins, interest rebate on finances and extended warranties on products. Also, Bajaj Auto and TVS Motors has been offering cash discounts of up to Rs 3,000 on bikes to lure customers to their showrooms and this had propelled sales during the festive seasons and Hero Honda had crossed its highest-ever retail sales of three lakh two-wheelers during the Diwali month of October in 2008.
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