Auto dealers expect deluge of customers

BUDGET IMPACT

Auto dealers in Maharashtra are anticipating a raft of new customers for the remaining eight days of the month. This will help the customers avoid a possible hike in vehicle prices as a result of an increase in the motor vehicle tax (MVT).

The Maharashtra government increased the MVT from 4 per cent to 7 per cent, which will be implemented beginning from April 1.

"We anticipate a 100 per cent rush in the next one week. Normally every month we sell about 70 vehicles.

The impending rush would take our sales to more than 120 vehicles in March," said Parvinder Singh, CEO, Asset Auto, the dealers for Mahindra & Mahindra.

Bharat Acharya of Navnit Motors also "� dealers in BMW and Maruti "� anticipated a more than 50 per cent increase in new customers for the current month. "With the rise in motor vehicle tax, the benefits of a reduction in excise duty for small cars will be negated. And there would be a marginal of price hike for big cars," said Acharya.

Also, in the last six months, there has been an increase in interest rates, he said. The increase for premium segment sedans like Skoda, BMW and Mercedes-Benz will be even higher.

However, the dealers feel that demand for new cars is unlikely to down.

"People who want to buy cars would buy them without bothering about increase in prices. Proof positive is the recent hike in petrol and diesel prices, which had a negligible impact on the car sales," said Parvinder Singh.