Ludhiana lags behind in Merc race

LUDHIANA: The city, known for high end vehicles and once considered a favourite destination of dealers of luxurious cars, seems to be gradually losing out to UT.
Thanks to disparity in taxes in Punjab and UT, UT had more sales of Mercedes cars in the last few years, as compared to the industrial town.
Out of total sale of Mercedes in this region, 55% were sold from Chandigarh whereas Ludhiana and Jalandhar collectively sold only 45% of cars in the last two years.
“Till a few years ago, Ludhiana would have maximum sales of Mercedes cars in this part of the country. But now the trend has reversed and Chandigarh has surpassed Ludhiana. Out of total annual sale, 55% of Mercedes cars were sold from our Chandigarh dealership,” said Deepak Joshi, managing director of Mercedes dealer partners Joshi Autozone.
According to him, the higher sale in UT was largely due to considerable tax difference between Chandigarh and Punjab. In Punjab, the buyer has to pay 1.25% extra road tax, which raises the cost of the vehicle.
However, Joshi maintained that this trend does not necessarily prove that more Mercedes cars are running on Chandigarh roads as compared to Ludhiana’s.
“A resident of Ludhiana may have contacts in Chandigarh and finding the cost of vehicle lower, he may buy the car from here. Such practice is not uncommon,” he pointed out.
Joshi Autozone has three dealership centres of Mercedes in the region, at Chandigarh, Ludhiana and Jalandhar. From these centres, it sold 478 Mercedes cars in 2012, whereas this year till June 30, Joshi Autozone sold 227 cars. Enthused with the new trend showing rise in sales in UT, they now plan to set up a big utility centre in Chandigarh early next year.
Eberhard Kern, managing director and CEO of Mercedes-Benz India who was in Chandigarh for the launch of new luxury sedan on Friday, said Punjab and Chandigarh have been strong markets for luxury cars, where demand is expected to grow.