Pune sees lowest registration of vehicles in a decade

Experts cite poor economic conditions, rising fuel prices, higher insurance costs, farm distress and higher cost of vehicles as reasons

Annual registration of two-wheelers and four-wheelers in Pune registered a significant drop during 2018-19, the first time in a decade, according to the Pune regional transport office (RTO).

Economic factors were one of the reasons for the drop in sales in 2019. (Image used for representational purpose only)(HT/PHOTO)

During fiscal 2018-19, Pune and Pimpri-Chinchwad RTOs registered 4.15 lakh vehicles compared to 4.45 lakh during the previous fiscal, marking a drop of 30,000 vehicles.

The decline has been attributed by experts to poor economic conditions and other factors such as rising fuel prices, higher insurance costs, farm distress and higher cost of vehicles.

Overall in the country, car sales grew 2.7% in 2018-19, the worst performance since FY14, while scooter sales grew by 4.8%, the slowest pace in 14 years, according to the Society of Indian Automobile Manufacturers (SIAM).

Given the absence of satisfactory mass transport in Pune, personalised transport has registered a robust growth in Pune across previous years. In December 2018, the then Pune RTO chief Babasaheb Ajri had said that the vehicular population in Pune at 36 lakhs had surpassed the city’s population of approximately 35 lakhs.

Sanjay Raut, deputy RTO officer, said economic factors were one of the reasons for the drop during FY19. “While it is difficult to assess the exact reason for the largest decline in vehicle registrations in the decade, our basic understanding is that the overall economic recession in the market has had a strong impact on the buying capacity of the citizens which eventually resulted in dip in purchase of vehicles,” he said.

Rising cost of vehicles was also a factor, RTO officials said.

Ranjit Gadgil, programme director of the city-based NGO Parisar which focuses on traffic and transportation issues, said, “Although there is a decline in the registration of the vehicles in the Pune RTO, local infrastructure aspects have hardly anything to do with this development.” He attributed the decline to rising costs of vehicles and introduction of reforms like GST.

Pune vehicle registrations

Year wise data of vehicle registration in Pune and Pimpri Chinchwad

2016-17

Pune: 2,70,307

Pimpri-Chinchwad: 1,25,377

2017-18

Pune: 2,91,117

Pimpri-Chinchwad: 1,54,591

2018-19

Pune: 2,61,410

Pimpri-Chinchwad: 1,54,444