Thanjavur: The demonetisation drive has caused a steep decline in the demand for new cars and motorbikes in Thanjavur. Dealers of LMV motorcycles and mopeds have reported a drastic dip in walk-ins and inquiries in both urban and more particularly in rural areas.

Only 1,051 vehicles have been registered with the Regional Transport Office, Thanjavur, in December 2016, while 1,309 vehicles had been registered in December 2015, an official said.

“Dealers have sold 130 LMV cars, 103 mopeds, and 254 scooters with mopeds in December 2016, as against 116 LMV cars, 257 mopeds, 611 motorcycles and 325 scooters with mopeds in December 2015,” the official said.

The booking numbers are down 50 per cent when compared to the corresponding period last year.

“The demonetisation drive has adversely affected the sale of cars. Customers are reluctant to even pay the margin amount fearing income tax problems,” says W Antony Suresh Moses, Assistant General Manager, Pillai & Sons Motor Company ( Maruti Suzuki Dealer), Thanjavur.

Though the dealerships have introduced various schemes, such as spot discounts and hefty incentives to company sales teams who convert inquiries to sales, it has not shown much gain. Customers do not want to make down payment in cash fearing income tax problems as disclosure of PAN is mandatory for the purchase of a new car, said Moses.