New Delhi, July 11: Buoyed by the huge demand for its passenger cars across the country despite the advent of new models, market leader Maruti Udyog Ltd (MUL) is planning to hike production by 19 per cent during July to 38,000 units. The company is producing on an average over 32,000 units per month. "This reflects that the new models have not been able to make a substantial dent in our market," a senior company official said.Maruti passenger car sales recorded a 17.2 per cent surge during the first quarter of the current fiscal while sales in June were up 27.3 per cent over the previous corresponding period.
Sales during the first quarter of 1999-2000 stood at 87,143 units as against 74,385 units in the previous corresponding period, while in June the company sold 24,578 passenger cars, up from 19,314 units in the same month last year.
Omni van and Maruti 800 led sales during the quarter with a sharp rise of 46 per cent and 15 per cent, respectively. MUL sold 18,914 units of Omni during the period,compared with 12,963 units a year ago. The 800cc model accounts for about 53 per cent of the company's total sales during the period at 46,000 units.
Against this, sales of the model were 40,000 in the previous corresponding period. Sources further pointed out that MUL has projected that it will close the current fiscal with a 20 per cent growth in turnover. However, bottomline is set for a major beating, mainly on account of the major price cuts on its models announced in December last year and the cost absorption by the firm for making them Euro-I compliant.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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