Luxury car sales in Andhra Pradesh are not on expected lines as the dealers struggle to find land at affordable prices in the proposed state capital. Amaravati has seen tremendous increase in buying power over the year especially after the real boom that followed the capital announcement.
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Many Luxury car companies are interested to come over there and they have also obtained necessary permissions. But the commercial land prices at a staggering 10 Crore per acre are foiling their plans. The dealers have to investment anywhere near 20-30 Crores only on land to setup showrooms here which is not financially feasible.
And so they are continuing their sales from Hyderabad itself. Andhra Pradesh is currently 8% behind the Life Tax targets of the new vehicles in the second quarter of the year. Due to this real boom, Telangana is benefiting from the life taxes even for the vehicles purchased by AP buyers.
