Aiming to provide that much needed relief to its dealers in these challenging times, Okinawa has increased dealer margins from 8% to 11%. Dealers have been hit hard due to coronavirus pandemic, as they are among the businesses that have been asked to stay shut during the lockdown period.
In a first, dealerships across the country will be registering close to zero sales in April 2020. There’s a lot of uncertainty about the future as well since Covid-19 cases are continuously rising in the country. There are obvious signs that the lockdown may be extended beyond May 3 in coronavirus hotspots.
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Okinawa’s increased margins for its dealers will come into effect from April 27. It will continue that way till an update is provided by the company. As of now, Okinawa has more than 350 dealerships across the country. When dealerships open again, the increased margins will allow them to make more profits. It will help them recover part of the losses that they may have suffered during the lockdown period.
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An increase from 8% to 11% may seem nominal, but it will still be fairly profitable for dealerships. On every sale, dealerships can expect to earn up to Rs 2,000 more, as compared to their current earnings. If we account for monthly sales, the numbers swell up even more. For example, if an Okinawa dealership sells 100 vehicles, their monthly income can increase by up to Rs 2 lakh.
Okinawa’s decision to increase dealer margins will be beneficial for dealerships that may have been facing cash flow issues. Increased margins will also reduce the risk of dealerships going out of business. It takes a lot of effort and resources to build and nurture dealerships, so OEMs cannot be expected to turn a blind eye to their woes. By increasing dealer margins, Okinawa has shown that it cares for its business partners. It also reveals that the company has adopted a visionary, long-term approach to tackle the current challenges.
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Launched in 2015, Okinawa is one of the leading and fastest growing electric two-wheeler manufacturers in the country. It offers a range of electric scooters such as Raise, Ridge, Praise and Lite. Okinawa scooters are popular for their high-speed, decent range and affordable pricing. With focus on ‘Make in India’, Okinawa was the first company to get approval for subsidies available under FAME-II.
At 2020 Auto Expo, Okinawa had showcased the Cruiser, which is India’s first electric maxi-scooter. Powered by a 72V, 4 kWh lithium ion battery, Okinawa Cruiser can reach a top speed of 100 kmph. Its range is 120 km. In the future, Okinawa might also launch electric motorcycles in the country.
Source: Bike - rushlane.com
