A section of the automobile industry has proposed that all industry players should refrain from announcing their monthly sales report prior to an announcement to this effect by the Society of Indian Automobile Manufacturers (Siam). This move, they say, will help avoid any possibility of fudging of sales numbers by a few players.
The Siam report is a compilation of the monthly sales report filed by individual member companies, which also gives an overall picture of each segment of the automobile industry. But with less than a quarter of the auto companies public listed, there is a question mark on the auditing of these numbers as well.
The country's largest car manufacturer Maruti Udyog said it was not releasing the figures for November in the beginning of December as has been the usual practice in view of the allegations of fudging by a few companies. A Maruti executive clarified that the company was not pointing a finger at any particular company. But it was in favour of the sales reports coming out on a single day in order to avoid any differences of opinion among the industry players.
A senior Hyundai Motor India official, however, alleged fudging was rampant and that it was also in favour of the reports coming out only through the Siam. But later during the day, it issued a press release stating that the company has sold 7,139 units in November this year. A break-up of the various models were not made available.
In the past, differences have emerged between car manufacturers on the issue of sales reports including export sales. One particular company having its manufacturing facility in the south was charged of incorporating their CKD exports in their sales report. Siam also refrained from giving domestic sales figures till around two months ago. Earlier, the association gave total sales and export sales and left it to the subscriber to find out the domestic sales of each company in each category.
But the allegation is not against Siam, it is against a few car companies who, according to an official in one of the leading car companies, delay their monthly sales report so as to fudge their reports based on these sales. An analyst, however, said such allegations are baseless. But there could still be some truth since more than three-quarter of automobile companies are listed, and reveal their books to the public.
A Siam official said today that fudging is not rampant, and is generally not practised, since the finance ministry keeps a close watch on the numbers produced by each company each month. "There is this issue of excise and sales taxes which keeps a check on companies. You can make a small mistake here and there, and I am sure this happens, but at the end of the year it all gets squared up. You cannot give two figures."
The Siam official also welcomed the manufacturers to put out their sales figures only through the association since it increases trust and transparency. It also regularises publication of monthly data, and curbs speculation. SIAM, however, does not publish numbers of units of each model of car or scooter or motorcycle sold. The companies will have to put them out on their own.
