No freebies for two-wheelers this festive season

With demand outstripping supply for most of the products, especially automatic scooters, most of the players have decided to avoid freebies this festive season. This comes on the back of buoyant two-wheeler sales in the first five months of the current fiscal. The festive season months, October and November, are the highest-selling months for automakers.

"There is no scope for discounting or price changes. The market has been buoyant and we have been struggling to meet the demand, leaving no scope for discount. Customers are willing to offer premium for prompt deliveries," said Atul Gupta, India vice-president (marketing & sales), Suzuki Motorcycle.

Hero Honda, which sells every second two-wheeler in the market, has stopped freebies, and will not undertake any promotional activity during Diwali, except for launching new products.

"We have not been giving any price-off and discounts for the past three years. We have decided to strategically invest in brand building, and have already kicked-off our festival initiatives with the launch of Super Splendor in August,” said Anil Dua, senior vice-president (marketing & sales), Hero Honda. “There will be a couple of more exciting launches in the run-up to the festivals. We have already started a slew of on-ground initiatives involving customers, dealers, schools and even rural areas and launch campaign around the Commonwealth Games to add fun and excitement to the festive season."

The second largest two-wheeler maker, Bajaj Auto, has also done away with discounting regime. It has even stopped rebates on financing options such as zero percent finance, which was its hallmark till few years back. "We are investing in brands. So there is no scope of discounting. We believe that our products are aptly priced and the customers are happy without any such discounting," said Milind Bade, head marketing, Bajaj Auto.

The two-wheeler market has been growing without any promotions. Till few years back, the companies had been offering free mobiles with talktime, iPods, gold coins, interest rebate on finances and extended warranties on products. Besides, major companies like Bajaj Auto and TVS Motors has been offering cash discounts of up to Rs 3,000 on bikes to lure customers to their showrooms. This had propelled sales during the festive seasons and Hero Honda had crossed its highest-ever retail sales of three lakh two-wheelers during the Diwali month of October in 2008.