Maruti and M&M sales hit by slowdown

Market leader Maruti Suzuki India Ltd (MSIL) and Mahindra & Mahindra (M& M), which at one point was clocking doubledigit growth, saw domestic sales shrinking in April as demand remained subdued due to the economic slowdown.

The launch of new models helped Hyundai Motor India Ltd (HMIL), Honda Cars India and Ford to record an increase in sales during the month.

MSIL reported 12.6- per cent decline in its April sales during the month at 79,119 units. Sales of the company's bread-and butter segment mini cars comprising Alto, A-Star and WagonR contracted by as much as 25.4 per cent to 26,043 units.

With the price of diesel having risen in recent months, the company saw sales of its popular compact sedan Dzire decline by 17.7 per cent during the month under review to 16,008 units.

Similarly, home-grown M&M, which was notching double-digit growth on the back of cheap diesel, also saw its domestic sales dropping by 15 per cent to 34,107 units from 39,902 in the same month last year.

"It is unfortunate that the auto industry has not seen an upturn over the last couple of months in spite of a reduction in excise duty," M&M chief executive (automotive division) Pravin Shah said.

HMIL saw its sales increase by 8.78 per cent to 35,248 units last month. HMIL senior vice-president (sales and marketing) Rakesh Srivastava said that the growth was led by Xcent, Grand and Santa Fee, which got an overwhelming response from the customers.

Honda Cars India posted a 30-per cent increase in domestic sales at 11,040 units in April riding on the success of its newly launched premium sedan City. The company sold 7,044 units of the car in April last year. Ford India also posted a rise in domestic sales to 6,651 units on the back of Ecosport.

Toyota Kirloskar Motor saw its domestic sales decline by 16.04 per cent at 7,562 units in April. The company, which was hit by labour unrest at its Bangalore factory, said that it resumed normal production from April 22.

Courtesy: Mail Today