Two-wheeler companies are planning to give huge discounts on the bikes and scooters in the coming days. In the two wheelers segment, inventory of companies has reached around 50 days, and hence they will have to sell their old models before March 31. Companies will do it because automobile industries will entirely shift to new fuel norms BS-IV from coming fiscal year April 1, 2017. And because of this reason, companies will have to sell those models which are equipped with standard BS-III.
What does SIAM say
According to SIAM, several auto companies had reduced their production levels by inventory and they will have to sell this inventory by March 31. Here, it is worth mentioning that currently most two wheelers are running on BS-III standard, while most cars are running on BS-IV. In such condition, in two wheelers segment, companies must switch to BS-IV.
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Prices will be higher
Two-wheeler companies will increase the prices of the new models after applying BS-IV norms. Bajaj Auto has already announced to increase prices up to Rs 1,500. On the other hand, other two wheelers companies may announce soon to increase prices owning to higher input costs and equipping the entire portfolio with BS-IV emission levels.
Huge discount on old two-wheeler
The new vehicle comes equipped with BS-IV standard soon, hence companies can offer huge discounts or other special offers to eliminate inventory of old models. And, because of demonetization last year, there was a steady decline in sales of two wheelers. That is why, the existing inventory level of dealers has reached 6 to 8 weeks.