More road tax on the way

Auto-SectorAfter facing several rounds of price hikes from various automotive companies, it is now the turn of state government to make the car purchasing affair even more costly for the consumer.

The Consumers will have to pay at least Rs 5,000 more to buy a car and up to Rs 2,000 for purchasing a two-wheeler in the National Capital after the state government has announced its decision of raising road tax on the vehicles.

While the new rates are still not in effect, auto majors are of a view that it will see a massive rush of consumers at its doors who will want to buy their products before the new rates come into effect.

However, as Delhi sells close to one in five cars sold in the country, the rate hike could also see an adverse impact on the sales volumes in the coming months.

Arvind Saxena director-sales Hyundai Motor India said that the increased road tax could act as a hurdle for the automakers and primarily will be a concern for the small car buyers in the Indian market.