The Indian auto industry is in the middle of its most challenging crisis and the complete ecosystem will need each other's support to ride this storm out. While several automakers have announced relief packages to safeguard the interests of their dealers, Gurugram-based electric two-wheeler maker Okinawa has announced an increase in the dealer margin, in a bid to support its dealer principles. The company has increased the dealer margins from eight per cent to 11 per cent per sale with effect from April 27, 2020. The company has a network of over 350 dealerships pan India and the incremental in margins will add up to ₹ 2000 in dealer profit, according to the company.
Also Read: Okinawa Cruiser Concept Electric Scooter Unveiled At 2020 Auto Expo
Announcing the dealer margins, Jeetender Sharma - Founder & MD, Okinawa said, "We understand that the country is going through difficult times. In this hour, everyone holds a responsibility to do their bit to make it easier for as many people, as possible. Our dealer partners are the true brand ambassador and Okinawa always stood by them. Strengthening this commitment, Okinawa today has announced a hike in dealers' margins. We expect this to get some respite the dealers, as the majority of the industries are going through the slowdown."
The company showcased the Cruiser maxi-scooter at the 2020 Auto Expo.
Okinawa says that the dealer margin hike can translate to healthy profits for the showrooms going forward. The dealer margin hike will be applicable until further notice. Okinawa retails a range of electric scooters including the Ridge, Praise and Lite models. The company showcased the Cruiser maxi-scooter at the 2020 Auto Expo that is set to go on sale by early next year. Okinawa was also expected to introduce the Oki100 electric motorcycle in April this year, but the company has had to push plans due to the unprecedented lockdown.
Also Read: Hero MotoCorp Announces Financial Package To Support Dealerships Amidst Coronavirus Crisis
Other brands too have been working to support dealers during this crisis. Honda Motorcycle & Scooter India (HMSI) announced a ₹ 1700 crore support package for its dealers. Meanwhile, Hero MotoCorp is offering a revised pricing structure on new products, financial support towards interest on dealer stocks and new financing options from Hero FinCorp for its dealers.
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