Buyers upset as bike dealers go out of stock after mad rush
LONG QUEUES People throng showrooms before ban on sale of BSIII vehicles from April 1
Thousands of Indians rushed to the nearest automobile showroom on Friday as dealers offered deep discounts and a slew of freebies to clear the leftover stock of cars and two-wheelers compliant with the older BS-III emission norms after the Supreme Court banned their sale from April 1.
Showrooms offered discounts of up to a lakh but in many cities, prospective buyers went back disappointed as dealerships either ran out of stock or downed shutter following excessive rush. Experts said many dealers had booked the vehicles themselves, to sell it later for a massive profit. The sale of the older vehicles is banned from Saturday but there is no restriction on their registration.
Between 1.5 and 1.8 million two-wheelers are sold every day, translating into an average of 50,000 sales daily. Dealers in all cities said most of the discounts were absorbed by respective automobile companies that were not available for comment.
“Many dealers have booked these vehicles either in their names or in the names of their friends and families at a discounted price. They will later book profits by selling it at a premium,” said Amit Kaushik, managing director (India) with Detroit-headquartered consultancy firm, Urban Science.
In Gurgaon and Chandigarh, many two-wheeler showrooms closed for the day after customers thronged dealerships. “I came to buy an Activa but these people have closed the showroom. I came after getting news of discounted clearance sale”, said Kamla Devi, outside Honda showroom in Sector 14 market.
On Wednesday, the Supreme Court banned the sale of BS-III compliant vehicles from April 1, dealing a ₹12,000 crore blow to the auto industry. Dealers were left with 48 hours to dispose of nearly 850,000 vehicles, around 750,000 of which are two-wheelers. A sales manager from a Honda showroom in Chandigarh said 50 out of 73 vehicles sold on Friday were BS-III models.
Bikes and scooters were sold at a discount of ₹15,000-₹25,000 while many cars had a rebate of between ₹50,000 and ₹1,00,000.
“I thought I will get a scooter at cheap rates but the showroom is out of stock,” said Daljeet Singh from Chandigarh.
“I wanted to buy a twowheeler but there is heavy rush and I am unable to meet the dealer to know about the availability of vehicle and discount,” said Ravi Mahawar, a buyer from Jaipur.
Sai Girdhar, secretary of the Rajasthan Authorised Motor Vehicle Dealers Association, said there was no panic among the states’ 350 auto dealers. “There is a stock of nearly 15,000 four-wheelers and 45,000 twowheelers in the state and all dealers can sell their stocks. It’s a blessing in disguise for customers who are being offered discounts. If stocks are left, then it is the company’s responsibility,” he said.
In Lucknow, employees at Gud’s Car Care, a dealer of Maruti-Suzuki two-wheelers in Nishatganj, said they had to work past midnight on Thursday as buyers queued up. “It is a once-in-a-lifetime offer. We are giving a discount of up to ₹20,000 on bikes,” said proprietor NU Alam. He hired private security guards for two days to manage the rush and ensure order.
In Kolkata, many dealers had to return customers. The dealers said that they have been getting inquiry phone calls from customers since Thursday.