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Bike sales decline 6.52 per cent in Andhra Pradesh, govt puzzled over negative growth, Auto News, ET Auto

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Bike sales decline 6.52 per cent in Andhra Pradesh, govt puzzled over negative growth

The Andhra Pradesh authorities is in a quandary with sale of motorbikes plummeting by 6.52 per cent within the first half of the 2022-23 monetary yr within the state when the nationwide common recorded constructive progress throughout the identical interval.

AP is the one state within the nation that has proven a unfavorable progress on this phase, leaving everybody involved baffled over the scenario.

Two-wheeler gross sales grew by 26.05 per cent throughout the nation within the first half of this monetary yr, in comparison with the corresponding interval final yr, official knowledge confirmed.

AP additionally registered a unfavorable progress of 1.76 per cent in all classes of car gross sales within the first half, triggering concern within the authorities.

Chief Minister Y S Jagan Mohan Reddy has taken critical word of the hostile development and requested the Transport Division authorities to “create a conducive scenario in AP” in comparison with different states, and push up the gross sales.

The Transport Division officers at the moment are partaking the automobile producers to seek out out the reason for miserable gross sales and work out a attainable answer to spice up progress.

The federal government deliberate to organise a brain-storming session on October 26 with all automobile producers on the problem however the scheduled meet received cancelled after the Principal Secretary (Transport) was changed.

Between April and September 2021, AP offered 3,31,695 motorbikes however the quantity fell to three,10,054 throughout the identical interval in 2022, marking a 6.52 per cent decline.

On the nationwide stage, 67,27,806 bikes had been offered within the first half of this yr, up 26.05 per cent from 53,37,389 final yr.

Automobile gross sales, then again, additionally didn’t present encouraging progress, climbing solely 8.27 per cent towards the nationwide common of 21 per cent.

“That is the primary time that we registered a big unfavorable progress in two-wheeler phase, and we’re additionally the one state in that regard. This has additionally led to unfavorable efficiency in total automobile gross sales,” a senior Transport Division official identified.

Neighbouring states like Karnataka and Tamil Nadu have proven strong progress figures of 58.06 and 31.52 per cent, respectively.

Car sellers got here out with totally different causes for the unfavorable development, significantly in two-wheeler gross sales.

“A two-wheeler has turn into a necessity nowadays however stands out as the buying energy has additionally come down. Nearly all bikes are offered on finance (mortgage) possibility however by some means we have now seen much less takers,” the regional advertising head of a serious bike firm identified.

He, nevertheless, mentioned the Dasara and Deepavali competition season in October noticed a marginal improve in gross sales but it surely would possibly take some extra months for the curve to take a constructive climb.

Retail sellers got here up with an fascinating remark that unhealthy roads have been a dissuading issue within the sale/buy of automobiles, significantly bikes.

“Life tax has been elevated from 9 to 12 per cent this yr and petrol worth touched Rs 110 a litre. Added to that is the damage and tear attributable to unhealthy roads. Our rural gross sales are largely affected by these components,” M Rajendra, a retail supplier, mentioned.

On two-wheelers costing as much as Rs 50,000, the tax fee of 9 per cent has not been modified however, on these valued above Rs 50,000, the life tax has been enhanced to 12 per cent to internet a further Rs 163 crore to the federal government.

With the federal government set to extend the quarterly tax on items and passenger (transport) automobiles for an additional income of Rs 200 crore, automobile sellers are nervous that it might result in hunch in sale of automobiles in that phase as effectively.

Supply: auto.economictimes.indiatimes.com

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