Weak demand is driving two-wheeler giants like Hero Moto and Bajaj Auto to offer discounts to customers on entry and executive models, according to a Business Standard report.
Nikunj Sanghi, Chairman, Automotive Skill Development Council said, “I don’t know if they are deep discounts, but yes there are discounts being offered and at this time of the year it is little surprising. Everybody in the entry level and executive segment is either offering direct discounts or have actually rationalised their prices. Being at the end of the financial year, everybody is looking at achieving certain numbers and certain volumes, and therefore, the discounts.”
On inventory pile-up, Sanghi said, “Discounts is both because of the inventory and the fact that the demand is much lower than what was anticipated. Primarily, because there are no marriages in this quarter which is normally the phenomena and the educational institutions have not really opened up, if they had then I guess we would have demand specifically at the entry-level and executive segment.”
“Weak demand, high entry these are the reasons for the discounting that we are seeing in the entry-level and executive segments,” he added.
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