Car Demand Up On S-T Hike Rumours

Reports of a 6 per cent increase in sales tax on passenger cars have triggered a heavy rush at dealerships across the capital. The increase in sales tax, expected to be notified on May 4, will raise the on-road price of small cars by around Rs 15,000 and of mid-luxury cars by Rs 30,000 here.

"Since March was a very good month and we recorded heavy sales, we were expecting April to be rather lean," says a Maruti dealer in east Delhi.

This dealer was hoping to sell only around 200 Maruti cars in April, but ended up selling 325 cars last month.

 

Ashok Sachdev, president and managing director of Harpreet Ford and owner of a Hyundai dealership, said there had been a slight panic on part of the buyers. "The last week of April saw a sudden spurt in bookings. Though in terms of numbers, the cars sold in April must have been the same as in the case of March," Sachdev said.

He, however, denied that dealers of either Ford or Hyundai were cashing in on the situation by selling cars at a premium.