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Auto majors sales dip due to uniform sales tax 

Rupali Mukherjee  
New Delhi, July 3: The passenger car industry witnessed a downtrend in June with all major companies registering a decline in sales due to the implementation of the uniform sales tax. In June, the industry witnessed a decline of approximately 32 per cent against the last two months and around 10 per cent drop over the same period in June 1999.

Cumulative industry sales are estimated to be around 35,000 units, as against 50,369 units in May and 52,978 units in April. Maruti led the B segment with a total of 5152 units, with Zen sales touching 3972 units and Wagon R sales 1180 units of Wagon R. In the C segment, Ford India Ltd (FML) was the leader with Ikon sales registering 1728 units. Hyundai Motor India Ltd (HMIL) followed with 1105 units of Accent.

Maruti Esteem sold 756 units and the Baleno, 239 units. The A segment registered sales of 8568 units; 5298 units of Maruti 800 - down from 12,164 units in June 1999 and 3270 units of the Omni (5322 units). The country's second largest car manufacturer, HMIL has grossed sales of 6116 units - 5011 units of Santro and for the month of June, registering a growth of around 32 per cent as against the corresponding period in the previous year. Sales are, however, lower than the May figure of 7561 units - 5851 units of Santro and 1710 units of Accent. Both the Maruti Udyog and Daewoo plants were closed because of a maintenance shutdown in June. While Maruti Udyog was closed for 15 days, Daewoo was shut for a week.

Daewoo Motor India sold 4702 units, of which Matiz accounted for 4484 units. The plant shutdown resulted in a production loss and a delay in supply to customers, a statement said. Honda Siel Cars India buckled under the impact of a uniform 12 per cent sales tax as sales of its mid-sized car City dropped 11.2 per cent in June 2000, at 801 units from 903 units in May.

However, the June 2000, sales represented a 6.8 per cent growth over 750 units sold in June 1999. The company ended the month with a 12.9 per cent share of the mid-sized car market, down from 19.2 per cent a year ago.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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