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      Customers shy away from petrol cars in Ahmedabad after hike in petrol price

      CarTrade Editorial Team

      CarTrade Editorial Team

      The car dealers in the capital of Gujarat have seen a large number of customers cancel their bookings following the steepest-ever price hike of Rs. 6.28 (excluding VAT) on petrol. Over the last seven days, 50 orders of petrol cars have been cancelled by customers at a dealership located on SG Road, Ahmedabad.

      Director, Group Planet Petal, Sukhbir Bagga, stated, "Ever since the petrol prices were raised, there is a negative sentiment in the market. Apart from cancellations, many bookings have been kept on hold." He further added, "Car sales have taken a hit due to hike in excise duty, interest rates and municipal tax. But sale of diesel variants has increased since the last eight months.” A dealer for leading car makers like Hyundai and Nissan, Bagga reported cancellation of 18 bookings in past 3 days.

      According to statistics, even though the petrol car prices were slashed by 15 per cent in the last financial year, the sales volume of the diesel cars rose by 35 per cent. With this in mind, experts are hinting that this hike in demand for the latter will continue. As per the dealers, car makers are already offering lucrative schemes and offers to push on the sales of petrol cars and are planning on increasing the production volumes of diesel vehicles.

      Director, Kataria Automobiles (a dealership of Maruti Suzuki), Naveen Jain, said, “About four to five per cent of our bookings have been cancelled after the hike. But we see this as a knee-jerk reaction from customers and soon demand for petrol and diesel cars will be levelled.”

      Likewise, Managing Director (MD), Concept Hyundai, Pranav Nanda, stated, "We haven't seen cancellation of booking but we haven't been able to convert inquires of petrol car into sales in the last three days. Customers are in a wait and watch period as they are waiting for a possible roll back in petrol price and hike in excise duty for diesel cars."

      Maruti Suzuki