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 optimistic development throughout the identical interval.
AP is the one state within the nation that has proven a adverse development on this section, leaving everybody involved baffled over the state of affairs.
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 knowledge confirmed.
AP additionally registered a adverse development 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 observe of the adversarial pattern and requested the Transport Division authorities to ”create a conducive state of affairs in AP” in comparison with different states, and push up the gross sales.
The Transport Division officers at the moment are participating the car producers to search out out the reason for miserable gross sales and work out a potential resolution to spice up development.
The federal government deliberate to organise a brain-storming session on October 26 with all car producers on the problem however the scheduled meet acquired cancelled after the Principal Secretary (Transport) was changed.
Between April and September 2021, AP bought 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 bought within the first half of this 12 months, up 26.05 per cent from 53,37,389 final 12 months.
Automotive gross sales, however, additionally didn’t present encouraging development, climbing solely 8.27 per cent towards the nationwide common of 21 per cent.
”That is the primary time that we registered a big adverse development in two-wheeler section, and we’re additionally the one state in that regard. This has additionally led to adverse efficiency in total car gross sales,” a senior Transport Division official identified.
Neighbouring states like Karnataka and Tamil Nadu have proven strong development figures of 58.06 and 31.52 per cent, respectively.
Automobile sellers got here out with completely different causes for the adverse pattern, notably in two-wheeler gross sales.
”A two-wheeler has turn into a necessity nowadays however often is the buying energy has additionally come down. Virtually all bikes are bought on finance (mortgage) choice however in some way we’ve seen much less takers,” the regional advertising head of a significant bike firm identified.
He, nevertheless, mentioned the Dasara and Deepavali pageant season in October noticed a marginal enhance in gross sales nevertheless it would possibly take some extra months for the curve to take a optimistic climb.
Retail sellers got here up with an fascinating remark that unhealthy roads have been a dissuading issue within the sale/buy of autos, notably 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 wear and tear and tear brought on by 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 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, car sellers are apprehensive that it may result in hunch in sale of autos in that section as nicely.
(This story has not been edited by Devdiscourse workers and is auto-generated from a syndicated feed.)
