Automobile trade up but car sales on downswing in state

Ranchi/Ramgarh: A study published by the Federation of Automobile Dealers Association (FADA) earlier this month has said the sales of vehicles across all segments in Jharkhand registered an 11.15% growth in August when compared with the corresponding month last year. However, the overall sale of four-wheelers, especially passenger cars, has slowed down in the last couple of years and is yet to show any signs of recovery despite the festive season round the corner.Govind Mewar, the president of the Jharkhand chapter of FADA based in Ramgarh, said, “Figures released by FADA early this month said 36,456 vehicles, including two-wheelers, three-wheelers, commercial and passenger vehicles and tractors, were sold in the state last month. The sales figures were higher by 11.15% from last August, where 32,798 vehicles across all segments were sold.” He said the state’s figures were better than the national average, which registered a growth of 8.63% last month compared to August last year.Though passenger car sales are down, two-wheeler sales posted a considerable rise from August last year. Mewar said over 27,902 two-wheelers were sold state-wide last month, which was a 10.1% growth from August last year.“SUVs have the largest market share in Ranchi in the car sector followed by sedans and others. However, the retail sales of passenger cars have posted a near-zero growth due to the poor economic conditions,” said Punit Poddar, the owner of Premsons Motors in Ranchi, while talking to TOI. The slump is also affecting the sales of high-end luxury cars such as Audi, Toyota and Range Rover, dealers here said. The FADA statistics also backed the claims of dealers as it said the passenger vehicle sales recorded just 0.73% growth from August last year.Pulak Singhania, the owner of Ranchi-based Singhania Group which owns more than 25 automobile showrooms in Kolkata, Ranchi and the rest of Jharkhand, claimed that the four-wheeler market grew by 44% nationally between 2020 and 2022.“In Jharkhand, the growth is only at 9%. Our worry is that if the national market can grow, why is the state market not going on a par with it,” he said. Ranchi alone accounts for nearly 35%-40% of the state’s total market for cars, the dealers said. However, SUVs by Mahindra and luxury cars by Skoda are doing brisk business in the state capital despite the slump.The state government’s Vahan portal has also reflected the dip in sales of passenger cars. While 48,600 passenger vehicles were sold in the 2020-21 FY, their numbers rose to 55,878 in the 2021-22FY. However, the sales dipped in 2022-23FY as only 52,720 vehicles were sold during this period. “Other than requirements, people generally buy cars when they have surplus money. When that is not happening, it indicates that things are not right with Jharkhand’s economy,” Singhania warned.