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Two Wheeler Dealers Expect 90 Percent Of BS3 Stocks To Be Sold

Already industry sources are saying the last 48 hours before the ban comes into effect could deliver a new record for two wheeler sales in the auto industry. The reason for this sales rush? In its ruling on March 29 2017, the Supreme Court had advised manufacturers to try and sell as much of their BS III stock as was possible. And they have taken the instruction very seriously.
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By Siddharth Vinayak Patankar

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1 mins read

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Published on March 31, 2017

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Highlights

  • Bike and scooter makers are seeing massive footfalls
  • Companies like Hero, Honda and others are offering massive discounts
  • Discounts in the bike industry start from Rs. 5000 to Rs. 3 lakh
The BS3 ban as the Supreme Court ruling on maintaining the April 1 2017 deadline has resulted in a massive sales rush on the last day BS III vehicles can be sold. While it has not been the same for commercial vehicles or three wheelers, bike and scooter makers are seeing massive footfalls at their dealerships. So much so that of the 6.71 lakh units of BS III compatible motorcycles and scooters left in the pipeline, dealers are expecting to sell off almost everything! "As far as two wheelers are concerned, most will get sold out. Ninety percent of them seem to be getting sold out - of the stock that was with the dealers. Discounts have been very high, and most are supported by the manufacturers. Most part of the inventory lying with the dealers will get sold. Moving inventory from manufacturers to dealers in two days was just not possible. (But) there could have been last week or ten day's production left with manufacturers. But most inventory would have been with dealers." says John K Paul, President, FADA (Federation of Automobile Dealers Association).
bike discounts
Big discounts are being offered on bikes

Already industry sources are saying the last 48 hours before the ban comes into effect could deliver a new record for two wheeler sales in the auto industry. The reason for this sales rush? In its ruling on March 29 2017, the Supreme Court had advised manufacturers to try and sell as much of their BS III stock as was possible. And they have taken the instruction very seriously. Paul adds, "I don't think most of the OEMs (manufacturers) expected this. They thought there would be some sort of a concession, and so did we at FADA. Now we are facing this - especially the dealer community - things could have been tragic - but we Indians find a way to somehow get things through. All manufacturers have taken stock of the situation and have come out with solutions that can somehow liquidate most of the stock today. What is left - we have to sit down and find a solution for that."
 

That solution could entail either exporting the vehicles to markets where they can still be sold, looking to retrofit them with BS IV compliant engines, or the adverse option - scrapping the products in question - which of course is the last resort. This is why the discounting was seen as the primary choice for most OEMs. In most cases it is the manufacturer that has provided the actual discounts being offered in the market. Of course some dealers are topping those incentives with further sweeteners at their own discretion. This provides some support to the beleaguered dealers who were lamenting the inventory they were stuck with as the deadline loomed near.

discounts offered on bs iii superbikes
Superbike manufacturers too have given a substantial discount on their bikes

We have reported extensively on the kinds of discounts the bike industry has doled out. From Rs. 5000 to over Rs. 3 lakh - and even free accessories or services - the bike buyer never had it so good, even in the festive period. In some cases bikes are going for a song - with discounts going as high as 25 percent of their ex-showroom price. Hero had the largest inventory of BS III bikes and has seen a massive rush of buyers. TVS and HMSI too have seen a crazy rush at dealerships today. In fact Honda has surprised many by offering a free Navi on the purchase of a CBR 250R or 150R! All would be BS III of course. Most cash discounts on the mass model side of things are as high as Rs 25,000, but on the premium side it gets even more exciting with lakhs being shaved off prices of superbikes.

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