State automobile industry hit by current recession

The current recession has taken the toll of the automobile industry in the state with the registration of vehicles in the state down by 24 to 25 per cent during the year 2000-2001.

The collection of registration fees has also shown a decline of 10 per cent for the first time in the state. Minister of state for transport Bimal Shah said the collection of registration fees has decreased from Rs 390 crores in 1999-2000 to Rs 336 crores in 2000-2001. He said the collection of registration fees has always shown an annual increase of six to 15 per cent in the past.

Giving details of the decrease in the sales of cars in the state Mr. Shah said there is a decline of 76 per cent in the purchase of Santro Hyundai, 30 per cent in Maruti, Mahindra & Mahindra 40 per cent, 23 per cent in Tata, Hero Honda four per cent, Bajaj Auto 26 per cent, TVS Suzuki 21 per cent and Yamaha 44 per cent in 2001 alone. There is an average of 21 per cent drop in the sales of vehicles in the state.

The national scenario is no better. Registration of small vehicles down by 12.5 per cent, Tata cars 24 per cent, Ashok Leyland 14 per cent, Hindustan Motors 35 per cent, over all passenger cars segment nine per cent and commercial vehicles 18 per cent.

The heavy vehicle sales are also affected adversely by 73 per cent. Telco registered a 45 per cent decline in sales, Ashok Leyland 76 per cent, Eicher Mitsubishi 63 per cent and Mahindra and Mahindra 16 per cent. However, with a collection of Rs 166 crores, the income from check posts have shown an increase in 2000-2001, Mr. Shah said.

Giving figures of the collections in the past five years Mr. Shah said the collection in 1994-95 was 14 crores, Rs 31 crores in 1995-96, Rs 32 crores in 1996-97, Rs 31 crores in 1997-98, Rs 56 crores in 1998-99 and Rs 93 crores in 1999-2000.

Mr. Shah attributed the increase in revenue to the computerization of check posts, which has helped to check corruption at the check posts. "The collection in the year 2001-02 is expected to touch Rs 275 crores," Mr. Shah said. He said all check posts will be linked by computers within the next two months, contract for which has been given to IBM. Mr. Shah said the optical fibre cards that are to replace the registration books would be provided by June.

"The optical fibre cards will have a 1.5 MB chip and will be charged Rs 200 for scooters, Rs 4000 for four wheelers and Rs 600 for commercial vehicles. It will be made compulsory in case of new vehicles as well as commercial vehicles whereas it will be optional in case of two and four wheeler private vehicles," Mr. Shah said.

Mr. Shah said the fees for the RC books will not go to the state government but will instead go to Shonkh which has been give a contract of Rs 46 lakhs for providing optical fiber card. "The state government revenue will be limited to that given by the Centre under the Central Motor Vehicles Act," he added. Replying a question, Mr. Shah clarified that Ketan Parikh is not involved in Shonkh. Mr. Shah said the Gandhinagar ST depot will be given the status of a separate division and more land will be allocated for any expansion.

Republished from Asian Age