Vehicle registrations in Mumbai see 20% dip in first quarter
Thanks to the slowdown in the automobile sector, four road transport offices (RTOs) in Mumbai saw 62,999 vehicle registrations in the first quarter this year, a 20% drop compared to the 78,222 registrations in April-June period in 2018.
Car registrations were hit the most – 12,230 from April to June this year, compared to 14,432 in the first quarter of 2018. In case of bikes, the number has dipped to 41,220 from 43,393. “In a first in several years, registration of high-end luxury cars, too, has dropped considerably,” said a senior RTO officer.
Registration of autorickshaw and taxis, including tourist and luxury vehicles, saw 70% and 20% dip, respectively. Shekhar Channe, transport commissioner of Maharashtra, said, “Drop in registration has affected our revenue collection too.”
Between January and March 2019, 69,767 vehicles were registered at Mumbai RTOs, compared to 90,234 vehicles in the same period in 2018. According to RTO officials, registrations have dipped by around 15-17% in the rest of Maharashtra, including the MMR. Currently, Mumbai has more than 36 lakh vehicles, with the numbers rising sharply in the past decade, with an annual growth of around 10%.
Facing slump, several leading automobile companies have temporarily shut down production. “A lot of unsold vehicles remain parked at company facilities,” said another RTO official. The RTO official said earlier banks and non-banking financial institutes were giving vehicle loans easily, but due to increased Non Performing Assets (NPA), banks are exercising caution.
According to experts, steps such as drastic reduction in fares of Brihanmumbai Electric Supply and Transport Undertaking buses, speedy completion of ongoing railway projects and Metro corridor work, will certainly deter people from buying new vehicles. “The city has reached a point where people feel anguished owing to traffic jams and parking woes. This could be one of the reasons for the drop,” said Ashok Datar, transport expert.