UP auto sales witness slowdown

What consumers look for, while purchasing a vehicle, is the mileage. "The major thrust now is on the fuel economy of a vehicle. Consumers want vehicles with maximum mileage," explained Shivam Gupta, a Maruti dealer in the city.

He further added that there is elasticity of demand as far as the four wheeler market is concerned, which implies that the need to own a vehicle can easily be postponed.

"This is seen of late, where the consumers are not quiet willing to purchase cars as of now, awaiting any fall in prices."

Also many people wait price fall or upcoming festival season when they can also get various add on to their purchase. In addition, the announcement of low priced cars like Tata Nano has also affected the sales.

"The market seems to pick up especially during the festive season, where the auto companies offer lucrative offers to their customers," Gupta added.

If experts are to be believed then besides fuel efficiency, increased rate of bank finance is also a major area of concern for the consumers, where they need to spend more money for a single purchase.

"With the upward swing in bank rates, the easy monthly installments (EMIs) have now become expense, which has directly affected the finance options available for the consumers," Manish Kumar from Commercial Auto Products said.

Apart from the increased fuel prices and bank rates becoming dearer, the choices that the automotive company offers also plays a major role.

"With various pick that the auto companies have to offer for their assorted variants, the customers rule the auto market," Kumar said.