Bumpy ride for auto firms in July

Automobile firms had mixed fortunes in July. While companies such as Hero Honda Motors and Maruti Udyog Ltd (MUL) reported double-digit growth in volumes, TVS Motor's sales grew by just 3 per cent in July, 2004.

The country's largest carmaker, MUL, registered a domestic sales growth of 10 per cent at 40,175 units in July 2004 compared with the same period last year.

Although its largest selling model Maruti 800 continued to lose ground, its other compact cars Alto, Wagon R and Zen posted a 67 per cent growth at 22,833 units for the month in review. Maruti 800 sales dipped 41.7 per cent to 9,5554 units.

Aided by massive price cuts to the tune of Rs 40,000, MUL's mid size sedans, Esteem and Baleno, grew 84.6 per cent by selling 2,335 units. Exports, however, slipped 38.2 per cent at 3,244 units.

General Motors India's (GMI) sales in July grew 20 per cent at 2,311 units compared with 1,935 units in the same month last year. These included 733 units of Chevrolet Optra, 800 units of Chevrolet Tavera and 786 units of Opel Corsa.

"The continuing growth in sales of GMI is a vindication of our decision to make world class products in India with greater localisation. Spurred by this success GM plans to bring some more new and exciting Chevrolet products specifically designed for the Indian market. This would not only let the Indian consumer enjoy more value for money but also benefit the economy," said P Balendran, vice-president (corporate affairs), GMI.

The country's largest motorcycle firm Hero Honda said its sold 2,05,654 units in July 2004, 44 per cent over the 143,141 units sold in the same month last year.

Cumulative sales since April 2004 went up 35 per cent at 814,777 units compared with 601,930 units during the same period in 2003. The company attributed the growth to increased demand of its entry level 100 CC motorcycle 'CD Dawn'. The company has also announced a uniform national price of Rs 30,899 for CD Dawn.

TVS Motors however reported a 7.5 per cent dip in its motorcycle sales as the demand for its bestselling model Victor, and its Max range of two-stroke motorcycles continued to taper off.

TVS sold 52,958 units in July 2004. Total sales, however, grew 3 per cent at 100,000 units in the review month, a company statement said.

The positive thrust came from its mopeds which grew by 17 per cent to 24,765 units in July 2004 compared with 21,137 units a year ago. TVS' exports, however, recorded a 114 per cent jump with 4,452 units exported in July 2004.