In one fell swoop, the Supreme Court has shaken the car market inside out. While most car buyers are confused over the Euro I and Euro II emission norms, dealers are biting their nails as they watch car sales plummet.The Supreme Court order has put the plug on the registration of new cars, but old cars do not face this problem. The logical thinking would then point towards a boom in the second-hand car market. But the surprising thing is that most Delhiites, instead of putting their cash against a second-hand car are sitting on the fence waiting to see what the Supreme Court will do next.Now that Euro I and Euro II have become the buzzwords in every cocktail circuit, the cars that conform to these norms, the Santro, Matiz, Indica and Mercedes among others, are going to make hay while the Supreme Court shines.Says Kirit Singh, an automobile engineer and expert: ``No one will now want to buy a car that does not conform to the Euro specifications as two or three years hence, we don't know what the courts willdecide. It's better to buy something that conforms to the highest set of norms.''And this sentiment seems to be echoing throughout the car market. The demand for the conformists, especially the Santro and the Matiz has shot up, and the second-hand car market is looking more dismal than before.
``People are waiting to see if these companies will offer them some deals before they buy the car,'' says Mona, salesperson at Ambience Motors in Defence Colony. The prices of the second-hand cars at her outlet have remained the same, she says. ``The market for second-hand cars has been very down and despite this order on registration, the prices are yet to go up,'' she says.
Competent Motors' sister concern, Auto Deals, confirms this. ``You can buy a good condition 1996 model Maruti 800 for Rs 1.2 lakh,'' says Ramesh Batra, in-charge of second-hand car sales at Auto Deals. A same-year Zen can be had for Rs 2.2 lakh, he says, adding, ``Finance companies are now willing to give up to 70 per cent loans forsecond-hand cars, which is facilitating this market.''
However, he feels that customers should wait a while until the Supreme Court gives an order on the counter-writ filed by the car dealers. ``They may increase the number of new cars that can be registered and the car companies will divide the quota amongst themselves. So, a car like Maruti make take some waiting period, but for those who are not in a hurry, a new car can be purchased, too,'' Batra says.
However, anticipating a surge in the second-hand market, some dealers have already upped their prices by Rs 20,000-25,000. Ravi of Auto Cars in Kirti Nagar says that while they have increased the prices of second-hand cars anticipating a rush to buy them, most people would prefer to wait and watch.But the picture is still hazy. ``Things are so unclear as yet that even those who were thinking of selling their cars are holding on to them in the hope that prices will shoot up,'' says Singh.
But as a word of advice, Singh says: ``Go for those cars thatconform to all the norms laid out by the Supreme Court. Don't take any chances.''
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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