New Delhi, Sept 16: Market leader Maruti Udyog (MUL) has apprehended a slowdown in the fortunes of the car industry saying that present high growth of 40 per cent in sales is not ``sustainable'' in the whole of the current financial year.``The present high growth of 40 per cent in the last five months (ended August) is very unusual. This cannot be sustained in the entire financial year,'' MUL managing director Jagdish Khattar told PTI.
Asserting that leadership position of MUL would be maintained for which various steps including introduction of new models were being taken, Khattar said realistically speaking, car sales growth of 10-15 per cent was sustainable in the medium- to long-run.
During the first four months of the current financial year, as many as 1.84 lakh cars were sold in Indian market as against 1.31 lakh in comparable period last year notwithstanding the prolonged recessionary phase witnessed by the economy in the last two years.
The phenomenal growth of 40 per cent in the carsales have surprised the car manufacturers alike as overall industrial growth during April-July was a meagre 5.4 per cent.
Though Maruti lagged behind in the industry's growth average, recording an increase of 16 per cent during the April-August period, it has increased prices of its various models in the range of Rs 4,000 to Rs 10,000 per unit to take advantage of the bullish market conditions.
Khattar, however, parried the question if MUL expected a drop in sales in the last two-three months of the 20th century on considerations that buyers would wait for the new millenium.
Maruti, which has a market share of about 70 per cent at present, sold 1.57 lakh vehicles in April-August as compared to 1.32 lakh units in the corresponding period of 1998-99.
In its bid to retian its market share, the company has planned to introduce two new models -- Baleno and Wagon-R, during the current financial year, followed by another model Alto in 2000-01, sources said.
Khattar declined to comment on introduction ofnew cars saying ``We will introduce more than one model in the current financial year.''
He said maximum growth is expected to take place in the small car and premium small car segments and Maruti was concentrating to strengthen its position in this segment.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.