Polls no more an incentive for car rental industry

C Shivakumar

Chennai:

Car rental businesses has hit a new low during the Lok Sabha elections as there is lack of demand for vehicles from the political parties.

Chennai Tourist Taxi Owners Association president M P Balakrishnan says that there was a huge demand during earlier elections and many companies would be renting a fleet of 100 taxis for political.

But now hardly 50 per cent of the cars are moving. Balakrishnan, who is in the business for the last 50 years, says that the rise in fuel prices and slowdown in economic growth has hit the car rental businesses too.

The sales have been hit and many of the owners are not taking the chance to rent out their vehicles fearing delayed payments.

Even the Election Commission has stringent regulations on spending by parties and it is being strictly implemented, he says.

As a result many parties are afraid to give purchase orders. “The purchase orders help the taxi operators to collect the money from the political parties. But now without purchase orders many taxi rental firms are afraid to rent out their cabs,” he says.

Interestingly, there is also less demand of cars from the political parties. Many of the cadres have their own vehicles, he says.

Interestingly, the demand for taxis during the last 45 days has also been dismal owing to frequent checks by the police.

Passengers travelling in taxis recount that they have been put to hardships as cops check their belongings. “Why so much fuss during the elections,” a lecturer with a college states.

Interestingly, the strict implementation of election code of conduct has resulted in reduction of trips for a Chennai based travel company. “We used to get 50 to 60 trips earlier. Now we hardly get 20 to 25 trips,” says a taxi operator.

Although many call taxi operators like Fast Track and Million Dots and others refused to provide any information, a few taxi drivers of the firms did oblige stating that vehicles had been rented out but refused to divulge further.

Gaurav Agarwal, founder and chief executive officer of Savaari Car Rentals said that there has been a surge in cab bookings during elections in Delhi and Bangalore and other cities and similar trend is being noticed in Chennai.

However, he refused to divulge any information on how many cars are being rented out to political parties. “Our cars are rented out in mass and is meant for general public or corporate use. We do not classify car rentals based on political activities,” Agarwal said.

Interestingly, Agarwal stated that higher level of traction is being noticed during the Lok Sabha elections as they are national in nature and involves inter-state travel as well as an increased travel schedule by political leaders when compared to state or local body elections.

When queried on what rates the cabs are rented out to political parties, Agarwal says, “Our rates remain standard and we do not offer any special tariff or discounts for political reasons.”

Interestingly, it is not only taxis but buses are also in huge demand. Many private bus operators don’t mind leasing out their bus during election rallies. An ordinary bus fetches Rs 6,500 to Rs 7,500 a day. “It is leased out from 9 am to 5pm for political rallies and an operator makes anywhere between Rs 2,000 to Rs 3,000,” says a bus operator