Dhanteras rush: Recession on wheels hit car sales

Traditionally, Dhanteras is an occasion to buy metals. People, however, have always expanded the meaning to include cars, which had resulted in huge sales around Diwali.

Traditionally, Dhanteras is an occasion to buy metals. People, however, have always expanded the meaning to include cars, which had resulted in huge sales around Diwali. But this year, gloom lies heavy on the city’s automobile market.

While the sale of small cars — costing around Rs 4 lakh — was down by 25 per cent compared to last year, sale of luxury car sales had dropped by as much as 50 per cent. M Salim, Assistant General Manager (Operations), Fortune Honda at Shahnajaf Road, said while last Dhanteras saw 22 luxury cars sold, this year, the figure was just 14.

“We have luxury cars like Honda Accord and Honda Hybrid, costing up to Rs 22 lakh,” he said.

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Explaining the reason behind the drop in sales, he said after the stock market crash, he said the banks are avoiding financing costly vehicles and people mostly buy vehicles on loan. “The other reason is the increase in interest rate on loans. Last year, the finance facility was available at 11 per cent, which has now soared to 17 per cent,” he said.

Vijay Anand Saraswat, Sales Manager of Mitsubishi Motors at Sapru Marg, said they expected to sell 20 luxury vehicles on Sunday. But till afternoon, only two Pajeros (Rs 22 lakh each) were sold. “At this rate, we would be happy if we manage to sell even six,” he said.

Rajdeep Singh, Senior Sales Manager at Commercial Auto Sales, Hazratgaj, said there was a 35 per cent drop in the sale of luxury cars in his showroom.

“The showroom has had a deserted look since morning. We sell cars like Octavia, Superb, Laura and Fabia. Till evening, only 19 were sold,” he said.

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The Manager of TS Motors, Mohit Srivastava, said the sale of small cars had dropped by 25 per cent. “We have Marutis starting from Rs 3 lakh. Last year, we had sold 118 cars, but this year only 40 were sold till evening. We expect to sell another 30.” The small car segment, he said, had been hit by the soaring petrol price.