Vehicle sales in Uttar Pradesh in fast lane, cruise past national average
Rush to clear Euro-III stock in March, assembly elections rev up businessUpdated: Jun 01, 2017 16:14 IST
Uttar Pradesh has sold new vehicles at full throttle and surpassed the national average, thanks to the huge discounts offered by auto dealers to desperately clear the stock of Euro-III vehicles in March, apart from assembly elections in the state jacking up the sale of SUVs to some extent.
The two factors together are said to have more than made up for the slowdown in sale in November and December after demonetisation.
The latest statics available with the UP transport department here reveal that the overall sale of vehicles, including all categories, grew by 10.54% between April 2016-March 2017 over the corresponding period of the previous financial year. This was almost double the national average. SIAM, the apex body representing Indian automobile industries headquartered in Delhi, has put the national average of automobile sale during 2016-17 at 6.80%.
The sale of cars, including SUVs and jeeps, and bikes/scooters registered an even bigger growth at 11.20% and 11.72%, respectively, in UP. There are a number of districts where the registration of new cars and bikes jumped by 25% to 90% while Kaushambi district registered a phenomenal growth of 1213.67% over the previous year.
Between April 2016 and March 2017, 23,20,149 new vehicles were registered in the state vis-a-vis 20,98,999 new vehicles sold in the state during 2015-16. This means over 2.21 lakh additional vehicles were registered this year.
Of the total number of vehicles sold this year, there were 1,99,203 cars/SUVs and 19,14,202 bikes and scooters. A further analysis of figures shows that around 45 districts registered vehicle growth of more than the state average of 10.5%.
The situation during 2016-17 was found to be in sharp contrast to the previous year when only a marginal growth of 4.98%, the lowest in recent years, was registered with a large number of districts having registered even negative growth.
However, this year too, the registration of vehicles was found to be negative in 10 districts, including Rae Bareli, Bahraich, Etawah, Allahabad, Pratapgarh, Hamirpur, Mahoba, Firozabad, Mainpuri, and Orai.
Transport and road safety commissioner K Ravindra Naik said the vehicle growth during 2016-17 would not have been any better than 2015-16 had the sale of Euro-III vehicles not been banned in the country.
“Since the Supreme Court banned in March the sale and registration of Euro-III vehicles, the dealers offered heavy discounts and other incentives to clear their stocks and this result in people making a mad rush to the showrooms in March,” he said, adding, “The growth in registration of new vehicles in 2016-17 vis-à-vis 2015-16 almost doubled in the single month of March for this reason.”
Naik also did not rule out the possibility of the assembly election campaign between December and March contributing to some extent to the sale of more vehicles, especially SUVs.
“Demonetisation did slow down the sale of new vehicles after banks stopped financing in November and December but the loss was more than compensated in March,” Naik said.
Automobile dealers admit to slowdown of vehicle sale for two months after demonetisation and a remarkable jump in sale in March due to ban on registration of Euro-III vehicles from April 1.
“The two months following the note ban decision on November 8 were really tough as the sale of our two-wheelers was almost halved from 350 a month to less than 200 a month,” said Satyendra Singh, manager of Mehul Automobiles, Faizabad Road, Lucknow.
The sale, Singh pointed out, went up significantly in March “since we had to clear the Euro-III stock and 300 vehicles were sold just in two days in March.
“But financially it only caused losses to us because we had to offer heavy discount up to Rs 10,000 per scooty/bike in a desperation to clear the stock of Euro-III vehicles,” he said.
According to Naik, UP’s vehicle growth in 2016-17 was more than the national average. As per the information available on their website, a total number of 2,1862,128 vehicles were sold domestically in India during 2016-17 compared to 2,04,68,971 in 2015-16. Worked out in percentage, the national average growth comes to 6.8%.
First Published: Jun 01, 2017 14:44 IST