Two Wheeler Dealers Offering Freebies

Published: Monday, July 18, 2011, 15:02 [IST]

Two wheeler dealers are offering several freebies to attract buyers despite of the two wheeler market showing a two digit growth rate. Two wheeler dealers are offering special schemes such as free accessories,lowered interest rates for loans and free service to buyers to increase sales. However it is a known fact that two wheeler sales in India continues to grow at a double digit rate.

Dealers are offering such freebies to models that are struggling to maintain sales. The Honda CB Twister can be considered as an example. This motorcycle is priced at about Rs.49,775 is more expensive that the Hero Honda's highest selling model the Splendour which is sold at Rs.41,350. With such a price difference between bikes that are similarly powered has meant buyers prefer the cheaper option. To compensate the higher price, Honda dealers in Delhi are offering discounts of up to Rs.3,500.

Two wheeler dealers are offering these discounts and freebies also to reduce their growing stock. Motorcycle manufacturers are not offering discounts as such as they feel confident that sales will continue to grow. But dealers who want to clear stock of low selling models are resorting to freebies.

Bajaj Auto's head of marketing Milind Bade said: “The two-wheeler market is still going strong and we do not see any reason to offer any benefits now." Yet Bajaj Auto's dealers are offering zero per cent interest on the 100cc Bajaj Discover commuter bike.

Dealers of TVS Motors, India's third largest bike manufacturer, have also offered freebies to lure buyers. They are offering customers of the 110cc Star City commuter bike benefits in insurance and road tax totaling up to Rs.1500.