Maruti too good for the others

Due to rising interest rates car sales have been on a decline in India,however three companies have beaten the trend Maruti,Mahinda and Mahindra,General Motors.



A mix of new product launches and discount schemes for existing models has insulated maruti from the slowdown.What's commendable is the way maruti continues to gain sales inspite of being the largest manufacturer in India.No complacency here.

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Auto makers didn’t have much to cheer about last month. Though new launches helped some auto makers grow their sales tally, majority reported a decline in sales in July.

Auto analysts have pegged the car market’s growth for last month at just 8-9% and this is largely due to Maruti’s healthy double digit growth. Two-wheeler manufacturers continued with their dismal show and posted negative growth for the month.

Market leader Maruti Suzuki’s cumulative sales were up 24.8% to 57,909 units as compared to 46,408 units sold in July 06. While the company’s domestic passenger vehicle sales grew 18%, its passenger car sales was up 17.8% at 52,315 units.

Maruti Suzuki India managing director Jagdish Khattar said the company clocked high double digit growth despite the subdued demand for passenger cars. “June and July have been tough for the industry due to increase in interest rates,’’ he said. Maruti exported 5,070 units.

Tata Motors posted a 6.7% decline in sales of passenger vehicles at 17,011 units while its commercial vehicles sales were down 3.8% to 20,705 units. The company’s total sales were down 6.6% selling 42,098 vehicles.

Ditto for Korean major Hyundai Motor India whose domestic sales were down 7.4%. The company said domestic sales suffered because it was servicing export orders. Thanks to Hyundai’s 16.6% gain in exports (13200 units) Hyundai’s overall sales in July were up 14.6% to 28,203 units.

Japanese car maker Honda Siel Cars India’s sales were down 17%. Skoda Auto India continued to sell few vehicles and posted a decline of 15.4%.

American car maker General Motors India however managed to grow by high double digit figures due to its new small car Spark. The company’s sales were up 89%,

Mahindra & Mahindra which rolled out its two millionth vehicle in July, posted a 49% increase in domestic sales selling 18,356 units against 12,841 units in the same month a year ago. The company’s exports during the month, however, declined 4% to 627 units against 655 units last year, M&M said in a statement.

Source