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Major automobile firms' December sales not good augury for new year 

Our Corporate Bureau  
Mumbai, Jan 4: If the sales figures released by Maruti for December 2000 are anything to go by, car makers may not ring in a very merry new year.

Maruti's sales plummeted by 23.3 per cent in December, selling 22,799 units as against 29,721 units in December, 1999.

Tata Indica's domestic sales fell by 181 units in December from November 2000. Indica sold 2,243 cars in December as against 2,424 units in November, 2000.

The figures collated for April to November 2000-01, show that passenger car sales have declined to 3,86,527 units from 4,02,694 units for the corresponding period last year. Maruti Udyog Ltd has been the worst hit with sales plummeting to 2,15,248 units from 2,63,610 units during the period.

Industry observers point out that Maruti has been hit by the fierce competition in the small car segment. It has been pointed out that a certain fatigue had also set in among customers with the Maruti 800 and Zen models.

Maruti's recently launched Alto has had a good initial response, but it has been pointed out that it is too early to predict the Alto's future. Hyundai Motor, however, has registered an increase in sales to 59,051 units from 45,229 units during April-December 1999-2000. Telco also had reduced sales during the period April-November 2000, as opposed to the same period last year. Sales figures decreased from 31,834 to 30,280 during the period.

Daewoo's small car Matiz has, however, been affected by problems faced by the parent company. Though the last few months have been bad for the automobile industry, observers feel that the fourth quarter will be good for the industry as sales normally pick up during the new year.

Moreover, indications that the proposed auto policy will impose stiff curbs against the import of second hand cars, has given a boost to the industry.

However, it is felt that Indica is poised for a major threat, the price difference between the petrol and diesel versions coming down being a case in point.

The two wheeler segment has seen dwindling fortunes with the scooter industry going through a major downslide and motorcycles poised for rapid growth. Bajaj Auto's geared scooters showed a negative growth of 55 per cent in Q3 of 2000-01. Bajaj's auto sold 87,516 units in the quarter ended December, 2000 as against 1,95,347 units sold in the corresponding period last year. However as opposed to this, Bajaj Auto's motorcycle sales registered 69 per cent growth in the third quarter of 2000-01.

Scooter sales (including exports) for the period April-November 2000-01, stood at 6,35,034 units as compared to 8,11,087 units during the same period in 1999-2000.

The scooter market share as a percentage of the three-wheeler segment declined from 34 per cent to 25 per cent during the period. The gap between scooters and motorcycles which stood at 12 per cent during April-November 1999-2000 increased by 28 per cent during this corresponding period.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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