BS-III Vehicle Discount Impact: Two-Wheeler Market Estimates Rs. 300 Crore Loss

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Cash discount ranging between Rs. 5,000 and Rs. 3 lakh were offered by two-wheeler manufacturers in last two days of March 2017 to clear out the BS III stock

During the two-day stock clearance sale two-wheeler industry of the country has faced an estimated loss of around Rs. 300 crore. In the wake of BS III ban from 1st April, the automakers in the country were offering huge discount and other cash benefits on 30th and 31st March, in an attempt to clear out its stock of BS III vehicles. The two-wheeler manufacturers were offering discount ranging between Rs. 5,000 and Rs. 3 lakh across products from various segments.

In just two days, the entire Indian two-wheeler industry sold more than 4 lakh BS III compliant bikes and scooters, which were to be sold in next couple of months. The Hero MotoCorp and the Honda 2Wheeler, the two major brands in the country made up 75% of the total inventory of Indian two-wheeler market. Among the more than 4 lakh BS III compliant two-wheelers sold in last two days, these two brands had the largest share combined. Therefore, they suffered the biggest loss as well.


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Hero MotoCorp being the biggest two-wheeler manufacturer in the country is expected to be worst hit by the discount spree. It offered direct discount ranging between Rs. 5,000 and Rs. 12,500 across its range of products. Also, the company was offering free insurance to the customers during stock clearance sale. Honda on the other hand offered direct discount around Rs. 22,000 and cash back up to Rs. 10,000.

Among other companies, Bajaj Auto, TVS Motors, Yamaha, Suzuki, Mahindra Two-Wheelers, Harley Davidson, Ducati, Hyosung, Triumph etc have also suffered loss by offering discount during stock clearance sale. However, Bajaj Auto seems to have faced minimal loss than its rivals due to the less number of BS III inventory. It offered discount between Rs. 7,000 and Rs. 10,000 across the Pulsar and Avenger range.


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TVS was offering discount of around Rs. 20,000 on the popular models powered by BS III engine. Mahindra too offered Rs. 30,000 discount on its Mojo tourer. Among the premium motorcycle brands, several companies offered discount around Rs. 1 lakh.

Source: Moneycontrol