The Hindu Business Line : Car sales rev up 24% on cheap loans, discounts in September

BUOYED by cheaper loan schemes and discounts, domestic car sales vroomed 23.7 per cent in September 2002. Almost all major automobile companies including Hyundai, Tata Engineering and Hindustan Motors recorded growth, with domestic car sales rising to 50,426 units during the month from 40,778 units in September last year.

Data released by the Society of Indian Automobile Manufacturers (SIAM) showed that the boost was mainly on account of growth in the B-segment cars, by 51.3 per cent in September to 27,912 units (18,444 units).

While all automobile manufacturers registered growth in the B-segment in September, Fiat India's Palio, that witnessed flat growth, was the sole exception. The highest sales growth of 87.5 per cent was recorded by Hyundai Santro.

Market leader Maruti Udyog while witnessing an increase in sales in the B-segment by 52.2 per cent, saw a decline in sales for its bread-and-butter model, the Maruti 800 by 5.5 per cent, in spite of the recent price reduction. Meanwhile, total car sales for the first six months of this fiscal increased by 4.1 per cent to 2,58,467 units from 2,48,312 units in the same period last year.

Industry sources pointed out that apart from attractive loan schemes, the growth in September could also be due to automobile manufacturers parking a higher number of vehicles with the dealers in view of the oncoming festival season. "The consumer offtake figures would be much lower," says an official from a leading automobile company.

The increase in sales of motorcycles too can be attributed to this factor. The segment witnessed a jump in growth by 34.1 per cent in September this year to 3,14,570 units from 2,34,615 units in the same month last year, with all the players recording good growth.

Scooter/scooterette sales, however, decreased by 6.84 per cent to 73,250 units (78,628 units). Honda Motorcycle & Scooter India, Kinetic Engineering, and Majestic Auto were the only companies, which saw significant growth in the segment. Sales of mopeds declined to 30,303 units in September from 41,948 units in the same period last year.

Meanwhile, bolstered by the growth recorded in the motorcycle segment, total two-wheeler sales increased by 17.7 per cent in September this year to 4,18,123 units (3,55,191 units). Total two-wheeler sales in the first six months of the fiscal grew by 24 per cent to 2,400,861 units (1,936,090 units).

Commercial vehicles sales saw an increase of 22.8 per cent in September, mainly due to the growth recorded by Tata Engineering and Ashok Leyland, to 16,253 units (13,238 units). Sales of almost all the sub-segments including M&H trucks and buses and LCV truck and bus saw growth.

Commercial vehicle sales increased for the sixth consecutive month to record a growth of 30.7 per cent during the first six months of the fiscal to 83,118 units (63,596 units).

The utility vehicles segment rose by 14.9 per cent in September to 9,865 units (8,610 units). M & M, Tata Engg and Toyota Kirloskar saw growth.

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