Coronavirus Relief: Okinawa Electric Scooters Get Better Dealer Margins

Published April 29, 2020
Views : 10800
3 min read

Expect this move to reap benefits once the lockdown is lifted and sales resume

Due to the coronavirus pandemic, the entire country has been locked down, heavily impacting the business across the sectors.
In a bid to offer distressed dealers some relief, the company has announced that it has increased dealer margins.
It will help dealers earn more per sale of scooter.

It is no surprise that the coronavirus pandemic has impacted the auto industry hard. The entire country has gone into lockdown mode since March 25 onwards. Automotive manufacturing facilities and dealerships have remained shut since and this has taken a heavy financial toll on dealerships who are staring at practically zero sales. In a bid to offer Okinawa’s dealers some relief in these trying times, the company has announced the increase in dealer margin from 8 per cent to 11 per cent effective from April 27. The brand has stated that the hike in margins will be valid until further notice.

Okinawa currently offers five electric scooters in India and here is the full price list:

Model Name	Price (ex-showroom Delhi)
Okinawa iPraise Plus	Rs 1,08,728
Okinawa Praise Pro	Rs 79,990
Okinawa Ridge Plus	Rs 73,447
Okinawa R30	Rs 56,405
Okinawa Lite	Rs 59,990

There’s a caveat, though. Okinawa’s move will only reap benefits once the lockdown is lifted and dealerships are allowed to function normally. Okinawa says this move will translate into a profit of up to Rs 2,000 per vehicle. The company says a dealership can earn up to Rs 2 lakh if they manage to sell 100 vehicles per month. So in a nutshell, the dealer will be able to gain considerable profit only through sheer sales numbers. But given the current scenario, it will be a hard task for dealers to achieve such numbers. Nonetheless, we commend the move. Here’s the press release from the brand:

Press Release:

Okinawa hikes dealer margins to 11 per cent, per sale

As the country is combating COVID- 19, Okinawa increases the margins for dealers from 8 % to 11% per sale

April 28, 2020, Gurugram, India: Okinawa- Indian electric two-wheeler manufacturing company with a focus on ‘Make in India’ has increased dealer margins to 11 per cent per sale. Amidst the COVID-19 spread, a lot of organization and people are surviving through the cost crunch. Okinawa has announced an increase of dealer margin from 8 % to 11 % per sale. The brand intends to enable its dealer network to make more profits, while everyone together sails through the difficult times. The hike is effective from 27th April until further notice. Okinawa currently has a sales network of over 350 dealerships across the country.

The hike in dealer margins is expected to add up to INR 2000 per vehicle in a dealer’s kitty. All in all, this will lead to handsome profits for the dealers. For example, if a dealer is selling 100 vehicles in a month, he will end up making an additional profit of over INR 2, 00,000.

Announcing the Dealer Margins Mr. Jeetender Sharma –Founder & MD, Okinawa affirmed “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.”

The brand is committed to contributing to all the possible ways during this unfortunate scenario. The brand further urges its customers to follow all the advisories and be supportive, as everybody together sail through these hard times.

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