Ahemdabad bike market visit
Ahemdabad used bike market is quite different from rest of the markets. Today in my Ahemdabad visit found out that buyers are very price conscious. And to the extent some of them avoid even third party insurance and just do away by paying 100Rs as penalty. Third party insurance will cost around 700for the same. . They are not aware or easily overlook the fact that even to cheapest third party insurance will help the another person who incurs the loss. But the buyers demand after sales and come back if there is any defect. Some dealers who honour their customer’s request get repeat sales. Dealers were open to idea of selling a low value below 500Rs product, a mix of personal fracture insurance plus 1 year RSA. Or a door step service with with fracture insurance. However this package could be sold to Offline customers only if the dealers get some commission on this maybe just 100 Rs.
Ahemdabad bike dealers seem sincere and would work with enthusiasm for even a small margin if the product is good for customers and they see the value in it. I also found out that dealers source 50 to 70% of their inventory by their tie ups with New bike showrooms were they get exchange vehicles. In Ahemdabad Honda Activa is best selling in scooter and in bikes Hero bikes sell more, mostly Splendor.
Overall scooters rule Ahemdabad used two wheeler market. Afternoon in Ahemdabad are comparatively less crowded, however evenings after 4 shops are full with inquiries. Dealers do complain that enquiries are disproportionately huge compared to bikes sold though. One dealer even said that while procuring bikes from NBDs they use a system of putting their quotes on chit and the guy with highest price gets the vehicle, looks like a form of Tendering system ? Droom is currently offering money on bikes sold though, like 2500Rs to dealer on a hoke sold between 20k to 30 k.
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They deduct Rs 750 token paid by customer. So dealer eventually gets 2500-750=1750Rs.Dealers are saying that this Diwali season is the slowest they have seen in years though. Some quoting that there is dearth of money in market. It is also heard that govt is planning to increase registration charges or on default in cases of no insurance, amounting upto 2k. But it’s nit confirmed though.
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