Observers of the automobile market, however, say the festive season is not the only reason for the spurt in demand.
The demand for two-wheelers and four-wheelers in the state during Navratra has outstripped supply, so much so that you would not be faulted for thinking that the recession was over. Observers of the automobile market, however, say the festive season is not the only reason for the spurt in demand.
The government announcement fixing September 30, 2009, as the cut-off date for depreciation of vehicles for tax purposes have also given a boost to the demand for personal vehicles.
Demand for both four-wheelers and two-wheelers was rather low during Navratra last year, evidently because of the recession. The situation is very different this year. Sukhabir Bagga, director of Group Planet Patel, said the impact of the recession in the automobile market was as good as over.
“One reason for the huge demand for vehicles this month is the auspicious period of Navratra falling in September,” said Bagga. “But the other important reason is the government announcement fixing September 30, 2009, as the cut off date for depreciation of vehicles.”
He explained that, according to the government announcement, vehicles purchased before September 30, 2009, would be entitled to 40% depreciation in value for assessment of their owner’s tax liabilities during the 2009-10 fiscal. “This is the other reason, beside the festive season, why there is such a rush to buy four-wheelers and two-wheelers in September,” Bagga said.
Group Plant Patel has the dealership of Hyundai and Nissan four-wheelers and Yamaha and Suzuki two-wheelers. Planet Hyunday sold 248 cars in August, the auspicious month of Shravan. “The demand would be highest around Dussehra,” Bagga said. “We would be delivering around 140 cars that day. If anybody books a car just now, I don’t think we will be able to deliver it this month.”
Maruti Udyog, which is the four-wheeler market leader in the state, is also reporting a sudden rise in demand. “In the next 2-3 months, we expect our sales to grow in double digits,” said a spokesperson of Maruti Udyog. “We are positive about this, especially as the good rains have wiped out worries arising out of poor monsoon and its impact on sales.” In Gujarat, the demand for Maruti vehicles, too, has far outstripped supply.
“Business was very dull last year,” said a Maruti dealer. “This year the demand is higher than the supply.” He added that WagonR, Alto and Swift are extremely popular in the state. In the two-wheeler segment, too, demand has gone up. Compared to last year, two-wheeler dealers in the city are expecting around 20% growth in sales.
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