Govt staff showered with 2-wheeler discounts

Two-wheeler majors, including Hero MotoCorp and Honda, have started offering exclusive discounts and offers to government employees and pensioners, to expand sales. The move comes after enhanced packages under the Seventh Pay Commission came into effect from January. Since then, arrears of the preceding months, too, have been disbursed. There are 4.8 million central government employees and 5.5 mn pensioners, who will benefit from the increase.

The country’s largest two-wheeler maker, Hero MotoCorp, is offering cash discounts of ~1,500 on every product (motorcycles and scooters), irrespective of price. For government employees in Delhi, insurance worth ~1,600 is also being offered gratis. “The scheme is available to government employees and their family,” said a Delhi-based dealer.

The second biggest, Honda Motorcycle and Scooter India (HMSI), is offering up to ~10,000 for government employees on three motorcycle brands Dream Neo, Dream Yuga and CB Shine. These include cash benefit of around ~2,000 and discounts on bike financing. The offers are valid till September.

“Government employees and their families comprise a large chunk of two-wheeler customers. The disbursements before festivals accelerate purchasing power. We have seen a healthy growth in individual buys by government employees, compared to the same month last year. As benefits continue in the festive season, so do buying,” said Yadvinder Singh Guleria, senior vice-president (sales & marketing), HMSI.

The domestic two-wheeler industry had grown a paltry three per cent in FY16, as the rural economy faced challenges due to a below-normal monsoon. The two key triggers — normal rainfall and increased salaries for government staff — are expected to drive volumes this year. In the April-July period of the current year, domestic two-wheeler sales have grown by 14 per cent.

Top carmakers had also announced sops. Hyundai is giving benefits of ~7,000 on the Grand i10 and Xcent and ~5,000 each on the i10 and the Eon, in addition to the existing promotional offers for central government employees.