Lucknow: Fuel price hike impacts auto sales

LUCKNOW: The sale of cars and motorcycles has been dented by the increasing fuel prices and insurance rates this year. The demand is fizzling out as the sale has dipped by 50% as compared to last year. However, the dealers are hopeful that the market may see some business on Dhanteras.

Automobile dealers say that rising insurance rate is scarring off first time buyers. "The new insurance price introduced by the Supreme Court which is almost double now has adversely affected the sale," said a two-wheeler dealer in Hazratganj.

Experts in auto sales say that the fuel price factor may be contributing to customers postponing their purchase decision. "Fuel prices play a major role when a consumer decides to purchase cars, be it a first-time buyer or an upgrader. As compared to last year, we have a 50% decrease in our sales with only 16 compact diesel cars prebooked. However, there is a great demand for SUVs and hatchbacks," said Prashant Tripathi, sales advisor of a leading car showroom in the city.

Lucknow's car association president, Sanjeev Sahni said, "Last year, the sale of cars was 100 but now it has only amounted to 20%."