Moreover, finance companies are also pushing the sales figure by slashing down the interest rate by providing finance to the potential consumers. Confirming this, the motor dealers have expressed that the demand of small cars are be increased as they are unable to deliver relatively large number of ordered quantity.
The sales figure of small car market is expected to touch the figure of Rs 50 crore for the fiscal year 2006-07 against the present Rs 35 crore market.
According to sources, the gold and jewellery market is reeling under a severe pressure of high prices, which has resulted in more car purchases instead. In Rajkot alone, nearly 1200 cars have been sold in this month only against the average sale of 400 cars in any month. Due to rapid industrialisation and infrastructure development, Kutch and Gandhidham have also seen a surge in car sale market.
Along with the duty cut, car companies are also facilitating finance to the potential customers in order to uplift the selling margin. Sources say the per capita income of large numbers of individuals has risen prompting them to buy small cars in the range of upto Rs five lakh.