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Luxury Car Sales Boom in Punjab, Haryana

Discussion in 'Business, Lifestyle & Leisure' started by kds1980, Aug 27, 2011.

  1. kds1980

    kds1980 India
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    Apr 4, 2005
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    Luxury car sales boom in Punjab, Haryana

    NEW DELHICHANDIGARH: The fact that Punjab is a major market for luxury cars is old hat, but proceeds from real estate deals for Punjab and Haryana-based farmers have added fuel to that trend. Luxury car makers such as Daimler Chrysler are now witnessing a sudden surge in demand.

    The sales of Mercedes Benz cars in the primarily agricultural state has surged by 27% as compared to the company's expected annual growth of 10 to 12% in 20010-11. Punjab, in any case, is the third biggest market after Delhi and Mumbai for Mercedes cars.

    Rural areas of the two states are emerging as the new hunting ground for luxury car makers after the real estate boom. Land prices in both Punjab and Haryana have skyrocketed during the last one and half years due to construction of shopping malls, hotels, apartments and multiplexes.

    "With the real estate boom in these states fetching handsome land prices, farmers in a couple of areas, including Bathinda and Nabha, have shown keen interest in buying Mercedes Benz cars during the last one year," said Manjit Singh Bala, MD of Chandigarh-based Tai Pan Traders (authorized dealer for Mercedes Benz).

    In fact, in Haryana the Reliance SEZ project may have run into political controversy, but the farmers who have sold their lands have made a neat profit and are among consumers who are on a luxury car buying spree. So far, the SPV of Reliance and HSIDC has procured close to 1700 acre of land in Jhajjar district. The price of this land till about an year ago was barely Rs 4 to 5 lakh per acre. Today this land is being sold at Rs 22 lakh per acre.

    This has come a big windfall for farmers. As Rohtak MP Deepender Hooda says that delegations of farmers keen on selling their land to the SPV are visiting him in increasing numbers.

    In fact, this phenomenon was also witnessed in Himachal Pradesh earlier. In 2002, when the Union government provided special tax concessions to industries based in Himachal, the prices of the land in Baddi-Barotiwala area went up by 4 to 5 times. Land, which had no takers for a long time, was then sold at a premium. The increased prosperity led the locals to invest in automobiles.

    However, since these people had never owned a vehicle ever in their life, there were grotesque instances of a family having three vehicles, with no one to drive. It goes without saying that the services of local village youth who could drive a scooter or more importantly a car were available for a premium.

    The sale of high-end cars has also received a fillip with rise in tourism (especially NRI visitors in Amritsar). As per estimates, 41% of the total sales of Toyota Corollas comes from north India.

    ******Related pics of imported luxury cars in Punjab and Haryana are coming soon**********

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