Indore auto sales slow down as buyers wait for Ujjain trade sweet ‘50%’ tax deal

Automobile sales recorded a slowdown in Indore in January, with dealers reporting comfortable inventory levels as a section of customers postponed vehicle purchases ahead of the upcoming Ujjain Vikramotsav Trade Fair, which offers a 50 per cent exemption on lifetime motor vehicle tax for non-commercial vehicles.

Dealers said many buyers are waiting to take advantage of the tax concession announced for the fair, scheduled to begin on February 25, affecting showroom footfall across segments.

Aditya Kasliwal, owner of automobile dealerships dealing in 2-wheelers and 4-wheelers, said sales declined noticeably. “Sales are down by more than 40 per cent. This is currently not a customer-driven market, as buyers are waiting despite multiple schemes, offers and discounts,” Kasliwal said.He added that trade fairs held in other cities also impact local sales. “The Gwalior and Ujjain trade fairs dent automobile sales in other cities because customers travel there to save on road tax,” he said.The Gwalior Trade Fair began on Dec 25, while CM Mohan Yadav announced a 50 per cent road tax exemption on vehicle purchases at both the Gwalior and Ujjain fairs.

Dealers said they are offering spot discounts and promotional schemes to retain customers. “To lock deals, we are giving attractive discounts to buyers,” a dealer said.

However, some traders said the overall impact remained manageable. Pravin Patel, an automobile dealer, said sales are steady and inventories are under control. “There is an impact from the fair, but it is unavoidable and part of the market cycle,” Patel said.

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