In a single day 700 cars sold in Gujarat

Automobile dealers in Ahmedabad reported accelerated growth in the sale of vehicles delivered on Dashera. For the four-wheeler segment, and particularly premium models, the last day for depreciation proved to be a major boost for their sales.

In addition, the implementation of the recommendations of the Sixth Pay Commission for government employees boosted demand in the small car segment. More than 700 cars were delivered in the city on Vijayadashami.

"We delivered around 150 cars to buyers across Gujarat, including 90 units from our Ahmedabad showroom itself," said Paras Somani, CEO of Landmark Honda. According to him, people preferred this auspicious day to buy cars as the last date to claim 40 per cent depreciation was nearing.

The implementation of the recommendations of the Sixth Pay Commission resulted in a salary hike for government employees. Because of this, there was a shift of 10 to 15 per cent from the two-wheeler to the small car market, a source in the industry said.

The response for the automobile industry was overwhelming considering that most companies with a presence in the two-wheeler segment did not introduce any schemes. A majority of dealers in two-wheelers believe that the stimulus package introduced by the central government has injected new life into the industry.

Moreover, the sales on Dashera indicate the people in Gujarat have overcome the psychological fear wrought by the global slowdown. The bullish trend in the stock markets can be sited as another factor that led to an increase in demand. Though the last year has not been good for the automobile industry, a majority of two-wheelers reported growth compared to last year, of between 20 and 50 per cent.