In the backdrop of the Uttar Pradesh Assembly poll early next year, the utility vehicle (UV) market is expected to witness surge in sales by almost 35 per cent.
UV is the first choice among party candidates for canvassing during electioneering in the rural hinterland due to its tough exterior, space and wider wheel base for rugged terrains.
Considering there are 403 Assembly seats in UP and multiple political party candidates and independents trying their luck at the husting, the demand for UV would be huge. In the last 2007 Assembly poll, about 4,500 candidates were in fray, including over 2,000 as independents.
At present, the UV market in the state is pegged at about 2,700 units per month, while the state accounts for nearly 10 per cent of the pan-India UV segment.
India’s top UV automotive Mahindra & Mahindra and Tata Motors churn out some of the most popular four-wheelers in this segment viz Bolero, Scorpio, Sumo, Safari etc. Toyota’s Innova is also one of the most popular vehicles in contention.
“The UV market is growing tremendously in UP and the assembly election would further prop up this segment by 30-35 per cent. Tata Safari is the most popular choice of the political class,” Lucknow-based Tata Motors dealership Goldrush Sales & Services managing director Pradeep Agarwal told Business Standard.
Tata Sumo and Safari starts upwards of Rs 5 lakh and Rs 7.5 lakh respectively with price increasing with the models and features, he added.
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According to Tata Motors head (UV product group) Ashesh Dhar the company have a share of about 13 per cent in the UV market of UP.
“The elections would definitely add volumes to the UV segment in UP, but putting a percentage to the growth would be rather early now,” zonal manager of an automotive said on condition of anonymity.
The expenses ceiling of an Assembly poll candidate in UP is Rs 16 lakh. However, normally the purchase of a vehicle is not included in the expenses as it is akin to owning an asset than pure poll related expenditure, such as on banners and flags, state election commissioner Umesh Sinha said.
Interestingly, not only the first hand UV market, the pre-used UV segment is also looking at boost in sales due to poll.
“The pre-used UV market is likely to swell by about 40 per cent during election time, since a good UV can be purchased in the second hand market at almost half the price,” Lucknow Car Dealers’ Association President Sanjeev Sahni said. He is also the managing director of Rama Car Sales Private Limited, a large pre-used car company.
The pre-owned car segment in UP is estimated at 5,500 cars per month. The Lucknow market alone accounts for over 500 cars per month.
“Utility vehicle offers greater ground clearance than cars for rural hinterland and it can accommodate more people,” UP Congress Committee (UPCC) member Akhilesh Pratap Singh said.