At Rs 1.99 lakh, Bajaj Dominar 400 comes across as an irresistible deal; can help boost sales
Towards the end of the financial year, it is common to see auto companies launching special offers and discounts. The obvious reason is to improve the year’s balance sheet as much as possible. Many consumers wait for such opportunities, something that has potential to boost sales.
In 2023, the mandatory compliance to BS6 Phase 2 emission norms is another reason why auto companies may be looking to clear old inventory. A relevant example is Bajaj Dominar 400, which is being offered by select dealers at huge discount of Rs 25,000.
Discounts to boost sales
With the discount, Dominar 400 is available at just Rs 1,99,991 at select dealers. Dominar 400 has always been one of the most affordable bikes in its class. At the time of its launch in 2016, Dominar 400 was available at Rs 1.36 lakh. Over the years, prices have increased multiple times. The bike has also evolved in terms of its features and equipment list.
However, even though it is affordably priced and loaded with hi-tech features, Dominar 400 has been an underperformer. This is especially true when compared to the 10k per month sales target that was initially set for the bike. Apparently, those goals haven’t materialized. In comparison, Dominar 250 has better numbers to show. Another interesting aspect is that Dominar 400 exports have been higher than domestic sales.
But Dominar 400 does have a niche fan following. And folks who may have had Dominar 400 on their wish list will surely be looking to make use of the Rs 25k discount being offered. It is unlikely that such huge discounts will be offered anytime soon. As there will be limited inventory, the discount will be offered on a first come first serve basis.
A case of price correction / slow demand?
There are suggestions that recent discounts being offered by auto companies could be a case of price correction. As may be recalled, prices of two-wheelers have increased multiple times over the last two years. Moreover, there was a significant spike in demand post the pandemic. Things have now become close to normalized in terms of input costs and demand.
So, in case of low volume products, it may be a good strategy to launch discount schemes. A good example is that of Honda CB300F, where prices were reduced by Rs 50k last year in December. This was a significant price cut, making CB300F available at around the same price point of bikes like Dominar 250 and Suzuki Gixxer 250.
With BS6 Phase 2 norms coming into effect from April 01, 2023, there are speculations that other OEMs may also introduce special offers and discounts to boost sales. Whether or not that is true remains to be seen. It can work in case of bikes that have high inventory and slow sales. In case of Dominar 400, the discount could also be due to upcoming rivals such as TVS Apache RTR 310.