Packed dealerships thanks to heavy discounts on BS-III two-wheelers

Published On: 4 April 2017
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Dealerships were forced to levy heavy discounts to clear stock.

Most local dealers have sold out their BS-III compliant stock on March 31st.

The government's decision to ban the sale of non BS-IV compliant vehicles after March 31st has led rampant confusion across the country. Dealerships everywhere were forced to levy heavy discounts on any remaining BS-III compliant vehicles in order to avoid heavy losses. The total BS-III vehicle inventory is thought to be around 6,71,305 units. In Chennai, Honda Motorcycle & Scooter India was offering a discount of ₹13,500 on scooters and ₹18,500 on motorcycles and it is no surprise that most of the dealerships quickly ran out of stock.

According to local dealers, these discounts have generated an unprecedented response, trumping even the crowds usually seen around Diwali. Most of them have sold out their BS-III compliant stock on March 31st only and are working to replace it with the new BS-IV vehicles.

The response to these new discounts, in turn, has been overwhelming. A Mumbai Hero Motor Corp dealership had to seek the help of the local police force to contain the crowds lest things went south. Most dealerships were open past 10pm to accommodate the eager crowds. Even in Pune, dealerships have had a tough time. Kothari Wheels sold more than 500 units of BS III-compliant two-wheelers on March 30 at discounts ranging from Rs 10,000 to Rs 15,000 not to mention that the Honda Navi was sold with almost Rs 15,000 knocked off the total price. Delhi faced a similar situation with a local Bajaj Auto dealer left with only the CT100 commuter model left in stock.

Companies such as Hero, Royal Enfield, TVS and Honda have managed to sell most of their remaining stock and, in turn, avoided major loss and confusion.