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  In a move to woo the customers and increase their sales, two-wheeler manufacturers and dealers are offering lower interest rates and cash benefits to the customers. The freebies have returned in the two-wheeler markets after a gap of four years.

Even though the two-wheeler industry is witnessing a double-digit annual growth, some models are short on sales. The freebies are being offered to boost the falling sales figures.

One such bike which is facing the heat is Honda Motors premium 110 cc bike CB Twister. Owing to staggering competition from models such as Hero Honda Splendor, Honda is offering a discount of rupees 3,500 on CB Twister to improve its sales. CB Twister was priced Rs 49,775 ex-showroom Delhi, whereas Splendor is priced 41,350.

“We are offering some benefits to reduce our stocks, as the market has been slowing with retail sales getting impacting and cautious customers postponing their purchase decisions,” a Delhi-based Honda two-wheeler dealer said. The escalating fuel prices and the surging loan interest rates have had a negligible effect on the sales. The interest rates have risen by 4 percent in the last year, whereas petrol has become dearer by 22-23 percent.

“The interest rates for two-wheelers have risen more compared to cars as the risk is high though the total value of the vehicle is much lower. There are a few models where dealers are vying for customers’ attention by discounting rates,” a top-level executive at HDFC Bank said. Bajaj Auto’s 100cc entry level motor cycle Discover is now being offered at a 0% interest rate. TVS Motor’s Star City bike is also being offered with a benefit of Rs. 1500, in addition to the insurance and road tax benefits. Judging from these trends, the analysts are expecting more freebies for the customers in the coming months.