Hero, Honda offer discounts of up to Rs 12,500 on BS-III models after SC diktat
Staring at a big hit a day after the Supreme Court prohibited the sale and registration of non-BS-IV compliant automobiles, two-wheeler majors such as Hero MotoCorp and Honda Motorcycle & Scooter India are offering heavy discounts of up to Rs 12,500 on such models to liquidate stocks.
With 6.71 lakh two-wheelers affected out of the total of over 8 lakh BS-III vehicles impacted by the ban, dealers said the immediate effort is to sell as many units as possible before the deadline by offering "unheard of discounts" in the industry.
Market leader Hero MotoCorp is offering discounts of up to Rs 12,500 on its BS-III two-wheelers.
According to dealers, the company is offering rebate of Rs 12,500 on its scooters, Rs 7,500 on premium bikes and Rs 5,000 on entry level mass market motorcycles.
On the other hand, the number two player Honda Motorcycle and Scooter India (HMSI) is offering a straight discount of Rs 10,000 on its BS-III scooters and motorcycles.
Both the companies said the offer will be valid till stocks last or up to March 31.
"These are unheard of discounts ever in the two-wheeler industry," Federation of Automobile Dealers (FADA) Director-International Affairs Nikunj Sanghi told PTI.
When asked about what actions were dealers 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."
He said the dealership community was hoping for some relief from the court in the form of more time to sell their stocks but with that not happening, the focus has shifted to liquidating the stocks.
Afterwards, it will have to be discussed with the manufacturers what to do with the unsold inventories, if at all any are left, he added.
Observing that health of the people is "far, far more important" than the commercial interests of the manufacturers, the apex court observed yesterday that automobile firms have declined to take "sufficient pro-active steps" despite being fully aware that they would be required to manufacture only BS-IV compliant vehicles from April 1, 2017.
(With inputs from PTI)