The Nagpur transport department’s funds have been affected by the ever rising fuel prices, mandatory five years’ insurance premium for new vehicles, interest on vehicle loans and app-based taxis that offer cheap transportation to customers.
For the year 2018-19, the revenue target for the city of Nagpur has failed. The officials however attribute it to the marginal increase in sales of both four and two-wheelers which was not expected by them.
The annual revenue target which was of Rs 124.78 crore of the Nagpur Regional Transport Office (RTO) could not be reached because of the drop in registration for new vehicles in 2018-19 and could collect only Rs112.49 crore. Apart from this only Rs145.40 crore was earned by the deputy East RTO against its target of Rs152.02 crore.
A senior official reportedly said that the motor vehicle tax is the primary source for revenue for the Nagpur RTO but in 2018-2019, the sale of new vehicles was below expectation and hence there has been a dip in revenue.
The overall revenue collection of RTO comes from tax on motor vehicles, passenger tax, compounding fees and other fees.
According to data procured from the city RTO in 2017-18, around 30,919 new vehicles were registered while in the year 2018-19 the figure came down to 28,102. However, the registration of new vehicles in east office has increased from 62,616 in 2017-18 to 66,518 in 2018-19.
Recently, many dealers had to close down showrooms due to the condition of automobile market. AK Gandhi, one of the leading businessmen from the city, said that in the last one year he himself had shut down two four-wheelers showrooms.
He also added that tendency of people for buying new products has reduced. Ola and Uber have replaced people’s need to buy private four-wheelers in his opinion. Also, people who have money postpone their plans and instead prefer to travel in app-based taxis like Ola and Uber which provide cheaper transportation than commuting in autorickshaws.
The purchase of two and four wheelers had reached its peak due to the significant rise in people’s purchasing power about two years ago. But, with the introduction of goods and services tax and some other change in policies people have started opting public transport over private vehicles.
Ashish Kale who is the president of the Vidharbha Automobiles dealers’ Association claimed that the auto industry had to face a slowdown since September 2018 pan India. But due to the infrastructure development, Vidarbha was less affected.
He also pointed out that with the onset of monsoon and the festival season which was a month later, the Nagpur market will.
Reports suggest that Automobile dealers said that despite offering various schemes, the showroom traffic has come down drastically, and enquiry conversions are also not taking place.
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