Two-wheeler sales skid on vendor problems, floods

New Delhi, Aug 1 | Updated: Aug 2 2005, 05:30am hrs
Labour unrest, vendor problems and floods in parts of the country dampened two-wheeler sales in July.

Market leader Hero Honda Motors Ltd recorded growth of 12% to 2.3 lakh units and Bajaj Auto Ltd 5.6% to 1.2 lakh vehicles. TVS Motors sales were flat, up 1% at 1.01 lakh units.

In the April-June quarter, the two-wheeler industry had grown 17% year-on-year.

Hero Honda, which has been facing supply constraints since May, said the situation had improved and full production was expected to resume from August.

Bajaj Auto, too, said non-availability of tyres would shackle its CT-100 production to 75,000 units per month till October. The companys growth in the motorcycle segment dipped to 11.5% from 56% recorded in Q1 this financial year. Also, exports in July fell 3.8% because floods in Maharashtra prevented dispatch of products, a company statement said. In the passenger car segment, market leader Maruti Udyog Ltd has bounced back after a poor Q1 when sales fell 5.3%. The market leader has recorded a 3% increase in volumes to 44,753 units boosted by a 12% growth in the A2 segment. Exports too picked up, up 29% to 4,200 units.

Meanwhile, on Monday, MUL also launched a new look Alto, its top selling model with cosmetic changes spanning headlamps, grille and interiors. The the price of the vehicle, however, has been unchanged.

Bajaj To Hike Capcity To 3 m Units Per Annum

Bajaj said that it would step up motorcycle production to 2 lakh units by October and also double production capacity of its recently launched Wave scooterette to 10,000 units per month. With that, the companys total production capacity, including three-wheelers, will touch 3 million units per annum. The company is also planning to launch a new motorcycle in the economy segment by January year. Bajaj would also introduce LPG fuelled three wheelers in Chennai and Kolkata soon.