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Rapid growth in vehicle business in AP state

 

People of Andhra and Rayalaseema region were quite disturbed with the bifurcation of the state, because there is no strong income source like Hyderabad city for the residuary AP state. However, their anxieties proved to be meaningless when seen the rapid growth in the vehicle business sector.

 

The undivided AP state government has earned Rs. 1000 crores of revenue from the 13 districts of the AP region in the last year. It is Rs.1200 crores now for the same period, which means a 20 percent increase in just six months period. Need not to say that this entire amount goes into AP government’s account only as Telangana state was separated from the AP.

 

Around, 72 vehicle showrooms were opened in the AP state during the last six months period. Out of these, around 25 are four-wheelers and ten are luxurious cars show rooms. These are in addition to the existing 84 show rooms that spread across the 13 districts of the state.

 

Earlier, many people in Rayalaseema and Krishna, East and West Godavari districts were used to purchase four wheelers from Hyderabad only as there is a wide choice to select. But, they now prefer to buy from the AP state only because they have to cough up 4 percent entry tax, if they buy vehicles at Hyderabad. So, that four wheel market has simply shifted to AP during the course of last six months. Many new car and bike show rooms were opened in and around Guntur and Vijayawada cities, where the farmers become milliners over night with the real estate boom. Even bankers are opening branches in Thullur and surrounding areas to cash in the huge transactions made by the local people.

 

The sudden growth in the car and bike show rooms and their sales brought an unexpected fortune to the cash strapped AP state government. Probably, the revenue may further grow once the capital city stands up at Thullur.

 

If the state government could bring the higher educational institutions and industrial corridors to the state as promised in the AP Reorganization Bill-2014, then this vehicle and transport business and the revenue also may grow proportionately. So, people can assume good days are ahead for the AP state.