Bike sales drop 6.52% in Andhra Pradesh, government puzzled by negative growth, Auto News, ET Auto

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The Andhra Pradesh government is in a dilemma with motorcycle sales falling 6.52% in the first half of the 2022-23 fiscal year in the state, as the national average saw growth positive during the same period.

AP is the only state in the country to see negative growth in this segment, leaving everyone concerned puzzled by the situation.

Sales of two-wheelers across the country rose 26.05 percent in the first half of this fiscal year, compared to the corresponding period last year, according to official data.

AP also posted negative growth of 1.76% across all vehicle sales categories in the first half, raising concerns within the government.

Chief Minister YS Jagan Mohan Reddy took serious note of the unfavorable trend and asked Transport Ministry authorities to “create a conducive situation in AP” compared to other states and increase sales.

Department of Transportation officials are now engaging automakers to uncover the cause of declining sales and find a possible solution to spur growth.

The government was planning to hold a brainstorming session on October 26 with all automakers on the issue, but the scheduled meeting was canceled after the Principal Secretary (Transport) was replaced.

Between April and September 2021, AP sold 3,31,695 motorcycles, but the number fell to 3,10,054 during the same period in 2022, marking a decline of 6.52%.

Nationally, 67,27,806 bicycles were sold in the first half of this year, up 26.05% from 53,37,389 last year.

Car sales, on the other hand, also showed no encouraging growth, climbing just 8.27% against a national average of 21%.

“This is the first time that we have seen significant negative growth in the two-wheeler segment, and we are also the only state in this regard. This has also led to a negative performance in overall vehicle sales,” said a senior official of the Ministry of Transport. .

Neighboring states like Karnataka and Tamil Nadu posted robust growth figures of 58.06 and 31.52 percent, respectively.

Car dealers gave different reasons for the negative trend, especially in two-wheeler sales.

“A two-wheeler has become a necessity these days, but maybe the purchasing power has gone down as well. Almost all bikes are sold as a finance (loan) option, but somehow other, we’ve seen fewer takers,” said the regional big bike marketing manager. the company pointed out.

He said, however, that the Dasara and Deepavali festival season in October had seen a marginal increase in sales, but it might take a few more months for the curve to take a positive ascent.

Retailers have made an interesting observation that bad roads have been a deterrent to selling/buying vehicles, especially bikes.

“The life tax has been increased from 9 to 12% this year and the price of petrol has reached Rs 110 per liter. Added to this is the wear and tear caused by bad roads. Our rural sales are largely affected by these factors,” M Rajendra, a retailer, said.

On two-wheelers costing up to Rs 50,000 the tax rate of 9% has not been changed but, on those over Rs 50,000 the life tax has been increased at 12% to earn an additional Rs 163 crore for the government. .

As the government is set to raise the quarterly tax on goods and passenger vehicles (transportation) for an additional Rs 200 crore revenue, car dealers fear that this will also lead to a drop in vehicle sales in this segment.

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