18 October, 2007
India’s top
two-wheeler makers, Hero Honda and
Bajaj Auto, have slashed prices on its
entry-level models, this festival
season.
While Hero Honda started the price war
announcing a discount of Rs 2,020 on
its entry-level bike CD Deluxe, Bajaj
Auto went a step ahead by reducing as
much as Rs 4,000 in the price of its
100 cc bike Platina. The price cuts
are seen as the companies’ way of
ushering in the festival season, and
thereby luring buyers to their
showrooms.
According to a report, Hero Honda has
gone for the price cut in celebration
of the sales of 20 million motorcycles
in the country. The company’s CD
Deluxe used to cost around Rs
35,000-36,000 before the price cut.
Meanwhile, Bajaj Auto’s Platina would
now be available for Rs 29,990 as
against the existing Rs33,990. The
companies have added that the offers
are for a limited period of the
festival season.
It may be noted that two-wheeler sales
had declined by 13.2 per cent in
September 2007 to 679,766 units, while
motorcycle sales fell by 18.4 per cent
to 548,816 units.
Meanwhile, a related report said that
TVS Motors, the third largest player
in the segment, has not thought of a
price cut on its entry level Star
range, which is currently priced
around Rs 36,000-38,000.
The latest price war in the motorcycle
industry comes in the backdrop of
lower sales volume this year on the
back of the series of monetary
tightening steps taken by the Reserve
Bank of India (RBI) to contain
inflation.
