Bandra-Andheri love luxe cars

RTO registration figures of the last three years reveal how the Western suburbs have beaten South Mumbai to top luxury car sale

Who says millionaires stay in South Mumbai? In the last one-year, nearly 1,550 high-end luxury cars valuing over Rs 15 lakhs were registered in the Western suburbs, while competitor South Mumbai registered only 1,382 vehicles.



Interestingly, figures obtained from the Regional Transport Office (RTO) reveal that registration of high-end luxury cars has been the highest in 2010-2011, as compared to figures from the last three years data (see box).

While South Mumbai topped the chart until 2008, since 2009, the Andheri RTO has witnessed a steep rise in the number of high-end car users. An official from the Andheri RTO said, "The growing showbiz industry in the Western suburbs, the change of lifestyle among residents and a growth in the economy could be the reason for an upward swing in numbers. People want comfort and are willing to pay for it."

According to senior RTO officials at Tardeo, industrialist Gautam Singhania recently registered a sports car worth over Rs 1.50 crore with them. Film actor Akshay Kumar was gifted a car costing over Rs 15 lakh by wife Twinkle Khanna on their wedding anniversary on January 17, said an official from Andheri RTO.

The actor did not come personally and sent a representative for registering the vehicle. Television host Anu Kapoor has booked a Fortune car worth Rs 21 lakhs, and last week the dealer visited the office for the registration of VVIP number for Kapoor.

"Other than indigenous luxury cars manufactured within the country, there is a upward demand for international luxury brands like Bentley, Audi, Rolls Royce and Porsche that are imported to India as Complete Built Units (CBU) by car manufacturers or dealers, said an officer.

Nitin Dossa, Executive Chairman of Western India Automobiles says he is not surprised that the Western suburbs have topped the numbers. "Harley Davidson bikes are popular among several film stars including Sanjay Dutt and Akshay Kumar, most of whom stay between Bandra and Andheri. These are the happening areas as compared to South Mumbai.

With the economy looking up, young executives and entrepreneurs can easily afford a luxury car, which is a status symbol for them. Besides, banks are providing easy, hassle free loans."

Dossa said statistical figures reveal that China is number one in the sale of the Rolls Royce, followed by India on second position.

Shapur Kotwal of Auto Car India said, "The working class, young population with high net salaries are passionate about luxury cars. Most of them spend hours commuting in the city, so it makes sense to invest in a comfortable car."

A senior customs official explained the modus operandi followed while importing luxury cars.u00a0 Importing spare parts invites a duty of 24 per cent as compared to a massive 105 per cent duty levied on Complete Build Unit (CBU) of new bikes or vehicles.

Apart from the customs duty, this method also deprives the state exchequer of transport tax, sales tax and octroi, which is applicable if the complete bike/car is imported. Once the parts are cleared by customs, they are then assembled locally, with both, the dealer and the importer benefitting.