Maruti May sales decline 4%

Maruti Udyog Ltd (MUL) reported a four per cent decline in its May sales due to a fall in exports and declining demand for the 'Maruti 800' model.

MUL's overall sales (including exports) in May 2005 dropped to 42286 units from 44212 units sold in May 2004.

However, the company reported a five per cent increase in domestic sales to 40,006 units from 38,041 units in May 2004.

MUL today said that exports in May 2005 was down a massive 63 per cent to 2,280 units against 6,171 units in the same month last year. The sales of the country only entry level (or A-segment) model, M800 too fell 39 per cent to 6,116 units (10,016), the company said.

The company had in January this year had relaunched the new-look M800 on the Indian roads, and had also upgraded to Bharat Stage-III emission standards. The fast growing B-segment in the country with leading models MUL, Hyundai Motors and Tata Motors have kept the demand for the M800 low.

The company, which had last month launched Suzuki's world car Swift in the Indian market, has said the response to the model has been very encouraging from the beginning.

In fact, it has said its May sales included 2,981 units of the 1.3-litre swift. Delivery of this new model however is expected to start only after June 6, 2005.

MUL's sales in the first two months of this financial year is down four per cent at 80,476 units against 84,050 units sold during the first two months of 2004-05. Exports in the two months of this fiscal are down 61 per cent to 3,498 units against 9,081 units in the same period last year while M800 sales have fallen 38 per cent to 13,026 units (21,113).

However, it has gained a marginal three per cent in domestic market where sales are up three per cent in April-May 2005 to 76,978 units from 74,969 units a year ago.

The hatchback segment, where the company sells models like Zen, Wagon-R, Alto and Swift, is providing most of the numbers. The segment saw sales increasing 23 per cent in may at 26,030 units (21,137).

The multi-purpose vehicle (MPV) segment, in which the company has products like Omni and Versa, saw sales going up by eight per cent at 5,435 units against 5,051 units in May 2004.

In the mid-size segment, Esteem and Baleno sales moved up 48 per cent to 2,236 units (1,510) in may even as sales of MUVs such as Gypsy and its SUV Vitara were down 42 per cent to 189 units (327).

General Motors India (GMI) today reported 64 per cent jump in sales during may at 2503 units as against 1527 units in the corresponding month the previous year. The sales grew mainly on account of surging demand for the multi-utility vehicle Tavera, which sold 1610 units in May taking its tally to a total of 16,659 units since its launch in mid-2004, a company release said here.

GMI's other model Chevrolet Optra sold 615 units in May 2005 while Opel Corsa sold 274 units and SUV Forrester sold four units.

Premium and luxury cars maker Honda Siel Cars India Ltd has reported a 38 per cent jump in May 2005 sales to 3,514 units against 2,549 units sold during the same month of the previous financial year. During the calendar year 2005, Honda City's sales grew by 29 per cent, Accord sales grew by 7 per cent and sales of SUV Honda CR-V grew by 22 per cent.