However, several passenger car and two-wheeler manufacturers such as Maruti Udyog, Hero Honda, TVS-Suzuki and LML recorded higher sales during the year, which was one of the worst years for the automobile sector. According to the figures released by the Association of Indian Automobile Manufacturers (AIAM), the commercial vehicles sector was by far the worst hit in 1997-98. The heavy commercial vehicle (HCV) segment recorded sales of 92,621 vehicles in 1997-98 as against 1,51,117 in 1996-97, a decline of around 39 per cent.

Telco recorded sales of 61,887 vehicles this year as against 1,08,829 vehicles in 1996-97, while Ashok Leyland sold 496 in the same year as compared to 591 vehicles in the previous year.

The passenger car segment registered a nominal 1.24 per cent growth in sales in 1997-98 to 4.16 lakh cars, largely due to a 4.5 per cent growth insales of market-leader Maruti Udyog Ltd. Maruti Udyog improved its market share by selling 3.45 lakh units in 1997-98 as against 3.30 lakh units in the previous year.

Bajaj Auto faced a huge drop in scooter sales in fiscal 1997-98, while sold more motor-cycles. It sold 6,29,591 scooters this year as against 7,10,856 units in the previous year. Sales of Escorts motor cycles also slowed down and the company sold 1,79,452 units in 1997-98. On the other hand, TVS Suzuki increased its sales at 2,11,667 motor cycles sold during 1997-98. Hero Honda sold 4,07,563 motor cycles during 1997-98 as against 2,68,936 units sold in the previous year.

In the LCV segment, sales declined by 24 per cent to 63,938 against 84,395 in the previous year. While sales of Bajaj Tempo (-37.62 per cent) and Eicher (-20 per cent) were on the lower side, that of Mahindra & Mahindra improved by about 10 per cent. Daewoo Motors (-40 per cent), Telco (-36 per cent) and Hindustan Motors (-12.5 per cent) had a bad year in 1997-98, butPremier Automobiles Ltd recorded 10 per cent growth. Telco suffered a 43 per cent dip in sales of its HCVs and a 26 per cent dip in sales of its LCVs.