Slump in UP auto market as growth rate dips 50%
The automobile market is witnessing a big slump in Uttar Pradesh with the sale of vehicles, including cars and two-wheelers, declining significantly in several regions of the country’s most populous state, hitting the state exchequer hard.lucknow Updated: May 05, 2016 18:11 IST
The automobile market is witnessing a big slump in Uttar Pradesh with the sale of vehicles, including cars and two-wheelers, declining significantly in several regions of the country’s most populous state, hitting the state exchequer hard.
This is exactly what the number of new vehicles registered in various districts in UP during the last financial year suggests. The growth rate in number of vehicles fell by more than 50% in the state during 2015-16 as compared to 2014-15.
A comparative view of newly registered vehicles in 2014-2015 and 2015-2016 in the state shows that a total of 23,20,149 vehicles, including 19,14,202 two-wheelers and 1,99,203 cars were registered in the state during 2014-15, registering a growth of 10.54% over 2013-14.
But the growth rate reduced by more than 50% in 2015-16 when a total 24,35,658 vehicles, including 20,12,718 two-wheelers and 2,11,114 cars were registered in the state showing a marginal growth of just 4.98% against 10.54% a year ago.
“This is unprecedented and probably for the first time that the vehicle growth rate declined to less than 5%. Normally, the growth is always between 10-15%,” said a senior transport official who didn’t wish to be identified.
The registration of new vehicles, which is indicative of sale, showed negative growth in several cities, including the state capital where the vehicle growth declined by 3.51% during 2015-16 as compared to the previous year.
“It is true that the vehicle growth declined significantly in UP during 2015-16, hitting our revenue at least by Rs 400 crore,” transport commissioner Ravindra Naik said adding, “It is part of a continuing countrywide slump in the automobile market.”
The commercial tax department is also said to have suffered a huge revenue loss on account of low vehicle sale in the state.
Non-payment of dues to cane farmers and prevailing drought are also reasons for the decline in the vehicle growth, said Naik.
Shivam Arora, sales executive with a Bajaj two-wheeler dealer in Purania, Lucknow said the dip in the sale of vehicles was evident. He attributed the decline to the prevailing inflation in the country. “In fact, barring the hotel and restaurant industry, probably all other sectors are facing a slowdown,” he said.
A further detailed analysis of the latest statistics available with the transport department shows that at least half-a-dozen of the 19 regions in the state registered negative vehicle growth during 2015-16 while the number of new vehicles grew nominally in some other regions.
The situation is found to be alarming, especially in Agra and Aligarh regions where the vehicle growth was minus 10.39% and minus 8.95%, respectively. Barring Rae Bareli, all the sub-regions/districts, including Lucknow, Unnao, Sitapur, Lakhimpur and Hardoi under the Lucknow region registered a negative growth from 3.51% to 5.10%.
The sub-regions or districts where the situation was worst included Hapur (-58.54%), Agra (-12.68%), Aligarh (-11.69%), Firozabad (-15.58%), Azamgarh, JP Nagar (-13.71%) and Badayun (-11.07%).