Valleyites buy cars for `500 cr/yr

MUKEET AKMALI

Srinagar, Dec 24: In what points to the vibrancy of market in Kashmir, Valleyites every year purchase private vehicles for more than Rs 500 crore.
 Based on a market survey Greater Kashmir conducted this week, on an average Valleyites purchase around 16,500 vehicles a year.
 Market observers said over the years the car market in Kashmir has seen upward trend as “most of the people here prefer to have their own cars.”
 “On an average if we assume that the cost of a car sold here is Rs 3 lakh the total volume of the market comes to more than Rs 500 crore. The figure represents only private vehicle market. There is also huge number of commercial vehicles being purchased in Kashmir,” people involved in automobile sector said.
 Out of 16,500 vehicles sold by the automobile dealers here, majority of the vehicles were duo cars with LPG kits.
 However according to the market observers after the LPG policy came into effect the demand for LPG cars has drastically come down.  “Presently the diesel run vehicles are in great demand,” they said.
 “Eying Valley’s thriving car market, more and more automobile companies are making forays here by appointing their dealers,” they said.
 Recently Toyota – a foreign automobile company opened their distributorship here.
 Over the years, according to market observers, Valley has seen an incredible increase in the number of car showrooms.
 “Demand for cars here is good. People remain very curious about the launch of new cars that in a way has brought stiff competition in the market,” said Tufail Khan, Executive Director, KC Motors.
 Khan said: “Only those players can survive in the market who have better after-sale services.”
 Meanwhile, market observers attribute the increasing demand of cars to easy finances provided by financial institutions.
 “The hassle free car loans being provided by the banks is one of the major reasons for the growth of automobile sector in the Valley,” said Aqeel Ahmad, a banking consultant.
 However, according to experts with the number of vehicles swelling “there is need to improve road infrastructure.”
 “Every year thousands of new vehicles are added to the market in Kashmir. However the road length is hardly enhanced by the same pace,” they said.

Lastupdate on : Mon, 24 Dec 2012 21:30:00 Makkah time
Lastupdate on : Mon, 24 Dec 2012 18:30:00 GMT
Lastupdate on : Tue, 25 Dec 2012 00:00:00 IST




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