The two-wheeler sellers claim to have achieved up to 85 per cent of their sales targets as compared to the corresponding period in 2019.
Like any other industry, the automobile sector is also not untouched from the side-effects of the Covid-19 pandemic. But there is good news from the automobile sector. While the car sales dropped as low as 85 per cent during May 2020, the two-wheeler segment sales have improved beyond the expectations.
The sales of two-wheelers have picked up during the past 45 days. The dealers claim they achieved service targets up to 80 per cent and sales targets up to 85 percent. The revenues were initially boosted by after-sales service and later on through the incentives offered to augment the sales.
Platinum Honda Chandigarh Sales Vice President Sunil Dutta told India Today that the first thing which the two-wheeler owners did after the Unlock 1.0 was announced was to get their two-wheelers serviced as the vehicles remained parked during the lockdown. That's why the service stations were able to achieve up to 85 per cent of their targets. He also claimed to have achieved 80 percent sales targets as compared to the corresponding period in 2019.
"Scooter sales are impacted by two things. One the amount of down payment being demanded and the finance. This segment buyers go for financing up to 70 per cent of the total cost. We eased both. We brought down the down payment from Rs 10,000 or 12,000 to Rs 5,000 and offered them attractive finance," Dutta said.
A good scooter is available between Rs 55,000 to Rs 75,000, with the EMIs costing between Rs 2,000 to Rs 2,500, depending on the period for which it is financed. Another step taken by the two-wheeler dealers to improve sales is to waive off the resale or handling charges.
"People usually sell their two-wheelers to buy a new one. We waived off the handling charges and got new customers," Dutta added.
Interestingly, the middle class avoided buying cars as the investment is higher and there is financial uncertainty at present. They instead chose scooters which not only saved money but also warded off the evils of the Covid-19.
The people were in fact buying scooters to avoid travelling in auto-rickshaws and buses. While travelling in your own vehicle, like a scooter, there is no need to fear the co-passengers. It is also convenient to drive a two-wheeler in cities like Chandigarh where the roads are regularly tarred and are in good condition.
To know the sentiments of the customers, India Today also spoke to few of them.
We met a working lady Kiran who told us that she was afraid of travelling in auto-rickshaws and transport buses as social distancing norms were not being followed strictly. Then she decided to buy a new scooter.
Manish Kumar of Zirakpur, who already owns a bike, also decided to buy a scooter for his wife.
"Travelling in a public transport bus is not safe as the sanitization is not guaranteed. I am buying a two-wheeler which can be used by both of us as and when required," Kumar said.
The efforts to achieve complete sales targets are on. The two-wheeler sellers have also tied up with some banks and automobile financial institutions to boost the sales. While the public sector banks are hesitating to finance the vehicles, some in-house arrangements being made by the two-wheeler manufacturers are attracting the customers.
The two-wheeler dealers are expecting better sales during July and festival season as over 30 per cent sales are registered during the festival season.