Okinawa hikes dealer margin from 8 % to 11% amidst lockdown
Indian auto industry is going through a pathetic phase and April has been a really tough month for the auto sector and as it's about to record zero sales for the first time in history. While some auto giants have announced relief packages for dealers and customers, Okinawa, the electric two-wheeler maker on Tuesday announced that it has hiked its dealer margins from earlier 8% to now 11% on each sale.
The company mentioned that the decision to increase the dealer margin comes in the view of the Covid-19 pandemic which has crippled the auto industry not only in India, but worldwide. It mentioned that this step will strengthen its dealer network and enable its retail partners to make slightly larger profits.
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The incremented profits are effective from Monday April 27th 'until further notice'. Okinawa mentioned that this hike will add up to ₹2,000 per sale in retailer's kitty. If a dealer is selling 100 vehicles per month, he will manage to make an additional profit of around ₹2 lakh.
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The company as of date has a network of over 350 dealerships across the country.
Throwing more light on the new announcement, Jeetender Sharma –Founder & MD, Okinawa commented, “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."
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Okinawa is headquartered in Gurugram and its manufacturing facility is located in Bhiwadi, Rajasthan.