Two-wheeler maker Honda Motorcycle and Scooter India (HMSI) on Wednesday said the company will give up to two per cent discount on its models this festive season.

However, the discounts will not be cash discounts and will be given on benefits such as accessories or insurance, and only on motorcycles, YS Guleria, Senior Vice-President, Sales and Marketing, HMSI, told BusinessLine here.

Speaking on the sidelines of the Society of Indian Automobile Manufacturers (SIAM) Annual Convention, he said, "Some schemes will be announced for motorcycles, but not for scooters during this festive season. We are closely watching the market and expect this festive season to do better as compared to last year."

One of the reasons for not doing much higher sales during this festive season would be because of capacity constraints, he said, adding that the company is running full capacity of four-lakh units (for both motorcycles and scooters) this festive season.

On the industry, he said because of the high base volumes last year, this year's festive season growth would not make much difference on higher growth.

Meanwhile, Honda Motorcycle and Scooter India saw just a marginal growth at 3.73 lakh units during August compared with around 3.71 lakh units in August 2014.

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