While the corporate sector in general is geared up to celebrate Women’s Day on March 8 with a generous platter of offers, the automotive industry has given the big day a big miss, breaking from the trend of previous years.
With the exception of one company, the automotive sector hasn’t been quite as enthusiastic about Women’s Day as companies from other sectors, which have rolled out a plethora of offers, such as discounts and other overtures, to woo women shoppers.
For instance, Reebok is offering a flat 20 percent discount to women buyers whereas Clovia has rolled out a ‘half price store’. Bag maker Hidesign is running a 30+20 percent discount offer while hotel chains such as Marriot and ITC have tailored menus and discount dining options.
Hero MotoCorp, the country’s largest two-wheeler maker, has rolled out specially curated offers for women riders. On offer is a Rs 5,100 cashback on all scooters in addition to the Rs 3,000 exchange/loyalty bonus. The Delhi-based company is the only company from the automotive sector to roll out offers for women on International Women’s Day this year.
Scooter preference
As far as two-wheelers are concerned the preferred ride for women has been the gearless scooter for the effortless ride it offers. Estimates indicate women buyers account for 25-30 percent of scooter sales. This share is, however, much lower in the passenger vehicle segment, where women are estimated to account for around 10-12 percent of sales.
“Last year demand turned upside down and the marketing team was under constant pressure to deliver. But this year without or with little incremental investment on promotion, every company is doing roaring business. It does not make sense to boost marketing spends (in such conditions),” said a senior sales and marketing executive at a Delhi-based automaker.
Robust sales
From the start of the festive season in September 2020, sales of passenger vehicles (cars, SUVs and vans), have remained on the upswing thanks to decadal low auto loan rates, new launches and various consumer offers.
According to data supplied by the Society of Indian Automobile Manufactures (SIAM), the PV segment recorded sales of 1.67 million units between September and February, recording a growth of 12 percent compared to 1.49 million in the same period last year. This represents a stronger-than-expected rebound in demand considering the 6-week lockdown had wiped out all sales projections for the year.
In 2020 and 2019, India’s biggest carmakers Maruti Suzuki and Hyundai, as well as Renault and Nissan, rolled out special offers for female customers including discounts on service costs, parts and accessories; dry washing; free vehicle pick-up or drop; discounted extended warranties; roadside assistance; and discounted insurance renewal schemes. All Ford cars registered under a woman customer’s name during the whole of March 2019 received a full-year extended warranty free of cost.
Each of these companies is presently running its factories at full capacity, with supplies struggling to match demand. Automotive demand has been robust despite multiple price hikes carried out over the past few weeks.