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 12 months 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 unfavourable 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 12 months, in comparison with the corresponding interval final 12 months, official information confirmed.
AP additionally registered a unfavourable 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 severe word of the opposed 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 are actually partaking the automobile producers to seek out out the reason for miserable gross sales and work out a doable resolution 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 obtained 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 degree, 67,27,806 bikes had been offered within the first half of this 12 months, up 26.05 per cent from 53,37,389 final 12 months.
Automotive 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 major unfavourable progress in two-wheeler phase, and we’re additionally the one state in that regard. This has additionally led to unfavourable efficiency in general automobile gross sales,” a senior Transport Division official identified.
Neighbouring states like Karnataka and Tamil Nadu have proven sturdy progress figures of 58.06 and 31.52 per cent, respectively.
Car sellers got here out with completely different causes for the unfavourable development, significantly in two-wheeler gross sales.
“A two-wheeler has develop into a necessity as of late however stands out as the buying energy has additionally come down. Virtually all bikes are offered on finance (mortgage) choice however one way or the other we’ve got seen much less takers,” the regional advertising head of a significant bike firm identified.
He, nonetheless, stated the Dasara and Deepavali competition season in October noticed a marginal enhance in gross sales nevertheless it would possibly take some extra months for the curve to take a constructive climb.
Retail sellers got here up with an fascinating statement that dangerous roads have been a dissuading issue within the sale/buy of autos, significantly bikes.
“Life tax has been elevated from 9 to 12 per cent this 12 months and petrol worth touched Rs 110 a litre. Added to that is the damage and tear brought on by dangerous roads. Our rural gross sales are largely affected by these components,” M Rajendra, a retail supplier, stated.
On two-wheelers costing as much as Rs 50,000, the tax charge 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) autos for an additional income of Rs 200 crore, automobile sellers are nervous that it may result in stoop in sale of autos in that phase as nicely.>
