The four-wheeler market in Ranchi is wearing a sombre look this Diwali. The festival of lights appears to be less bright compared to previous season for the four-wheeler market in terms of sales around the festival.
With the exception of few, city based dealers look dejected due to lower demands and strict terms of finance offered by private as well as public sector banks. In recent times due to tightening of norms banks are not only charging a higher rate of interest but have raised their criteria for availing loan for vehicle.
“Demands have decreased due to 20 to 25 per cent rise in vehicle prices since last year. Apart from higher prices stricter norms have kept the customers at bay,” said Dinesh Singh of Jayshree Ford.
Interestingly, while private banks are less popular among loan seekers PSBs, grant loans to people having an annual income of more than Rs 6 lakh thus, drying the loan avenues for a vehicle buyer and accentuating the problem for car dealers. “People prefer public sector banks but they cannot afford loans from them. They cannot approach a private bank because they fear the atrocious recovery process,” said sales manager of Rahul Automobiles.
Besides increase in vehicle price, soaring fuel prices is blamed for diminishing demands. Fuel prices have increased by around 20 per cent in the span of one year adding salt to already battered and bruised vehicle owner.
“Higher fuel prices mean higher running cost. This is enough to deter a potential buyer who is burdened with inflation in other items,” said Singh of Jayshree. But, amid the inflationary concerns sales of some brands are claimed to be higher due to the brand image they have created for themselves. “Booking at our outlet has crossed the figure of 100. Thanks to the brand image and fuel efficiency we are enjoying good sales,” said sales officer of Premsons.