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Monday, March 29, 1999

Multi-utility vehicles buck exports trend; Maruti, Benz skid off track 

UNITED NEWS OF INDIA  
New Delhi, Mar 28: Sales of made-in-India cars, especially Mercedes-Benz and Maruti, and even two-wheelers, skid off tracks in the export markets even as multi-utility vehicles (MUV) and three-wheelers bucked the recession and raced ahead with improved sales during the first eleven months of the current fiscal.

While the entire passenger industry sales in foreign markets shrunk by 16 per cent, MUV sales spiralled by 14 per cent, latest figures released by the Association of Indian Automobile Manufacturers (AIAM) revealed.

The commercial vehicles segment continued to reel in the grip of recession across the globe, with total sales dropping by over 20 per cent during the April-February 1998-99 period. Meanwhile, retails in the entire two-wheeler industry, including scooters, motorcycles and mopeds dropped by 24.5 per cent even as three-wheelers closed the period with a 9.6 per cent growth in sales.

In the passenger car segment, Mercedes-Benz saw a major crash in its E-class' retails abroad. Sales droppedby 78 per cent to 494 units from 2,314 units a year earlier. Telco followed with a 39 per cent drop in its overseas sales at 1,451 units as against 2,398 units a year ago while market leader Maruti Udyog Limited's passenger car exports skid by 7.3 per cent at 19,347 units from 20,892 units in April-February last year.

Maruti was, in fact, the only manufacturers in the MUV segment to have witnessed a drop in sales while Mahindra & Mahindra and Telco whizzed ahead recording a significant growth. MUL's MUV sales dropped 35 per cent at 529 units from 818 a year earlier while M&M sales looked up by 41 per cent at 881 units and Telco surged ahead with a 31 per cent growth offloading 895 units, the aiam figures stated.

In the entire two-wheeler industry, mopeds led the slide with a 34 per cent drop in sales overseas. Motorcycles, who have been spear-leading the growth track in the domestic markets, were also major losers in the export markets with retails dropping 24.9 per cent during the period. Scooter sales,however, dropped only marginally at 6.3 per cent.

In mopeds, TVS-Suzuki led the decline recording a 75 per cent drop in sales, to a mere 832 units from 3,429 units last year. Majestic auto witnessed a 49 per cent slide in sales to 14,437 units from 28,652 units in the same period last year while Bajaj Auto's moped sales plummeted by 33.5 per cent to 2,825 units from 4,249 units last year.

Escorts Yamaha seems to have put the industrial unrest at its units behind its back and is now surging ahead in both domestic and export markets. Its moped sales moved up 33 per cent to 5,654 units during the eleven-month period while Kinetic Engineering recorded a 29 per cent growth in overseas sales to 5,363 units.

According to the AIAM report, TVS-Suzuki's motorcycles left rest of the players in the rear-view recording a 71 per cent surge to 1,869 units followed by Royal Enfield, which registered a 35.5 per cent growth in sales abroad to record a sale of 553 units. Rest of the players in the segment, however, failedto perform and closed the period with a drop in sales. Hero Honda's exports dropped 35.5 per cent, Bajaj Auto's 30.5 per cent and Escorts Yamaha's 11.2 per cent.

In scooters, TVS-Suzuki once again led the drop in sales with a 69 per cent slide to 744 units from 2,401 units a year earlier. Bajaj Auto's scooter sales slipped by 11 per cent to 6,935 units while Kinetic Honda closed the period with a 2.6 per cent drop in sales in the overseas markets selling 6,766 units. LML Limited was the only player in the segment to have surged ahead with a positive growth in sales to 10,332 units, up 11 per cent from the previous year's 9,302 units.

In three-wheelers, Scooters India's vehicles continued to be a good draw in nepal resulting in a 102 per cent surge in retails abroad to touch 154 units from a mere 76 units last year. Bajaj Auto also closed the period with a 9.1 per cent growth in sales abroad to record a sale of 18,665 units' up from 17,093 units a year ago. In the medium and heavy commercial vehicle (MHCV)segment, Ashok Leyland was the only player to have closed the eleven-month period with a positive growth in exports to 1,531 units, up 8.6 per cent over the previous year. Hindustan Motors closed with a 38 per cent drop in overseas sales of its MHCV followed by Telco, whose retails abroad dropped by 24 per cent.

In the light commercial vehicle segment, M&M was the only player to have recorded a growth in retails abroad during the period to 91 units, up 85 per cent from 49 units a year earlier. All the other players, including Ashok Leyland, Eicher Motors, Swaraj Mazda and Telco ended the period with a drop in sales in the overseas markets.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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