Win US$10,000 from Prudential www.prudentialasia.com/contest.htm

Express Properties

Search Button

The Indian Express

The Financial Express

Latest News

EIW

Market Indicators

Screen

Celebrity Chat

Express Computers

Express Power

Advertisers Forum

Express Careers

Business Forum

Match Maker

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Morning Digest

Graffiti

Crossword

Drumbeat: Ad Buzzaar


Politics

Business

Expressions

General

World

Sports

Leisure

States

 

Wednesday, August 26, 1998

Two-wheelers escape recession, register growth

ENS ECONOMIC BUREAU  
NEW DELHI, AUG 25: Two wheeler makers, Bajaj Auto, Hero Honda and TVS-Suzuki continued their joy ride in the recession hit automobile industry which saw car sales plummet by over 50 per cent between April-July.

The two wheeler segment registered smart growth during the period but almost all other segments took a severe drubbing as per the latest figures of the Association of Indian Automobile Manufacturers (AIAM). Sales of luxury car-makers General Motors, Mahindra Ford and Pal Peugeot plummeted over 55 per cent during the first four months against the same period last year, the AIAM figures showed.

The heavy commercial segment whose sales nose-dived by over 45 per cent was the most affected by the economic slowdown, with market leader Telco alone suffering a massive negative 49 per cent growth. Telco's cup of woes continued to brim over in the multi utility segment which saw a 30 per cent negative growth.

But India's largest car maker Maruti Udyog Ltd sustained its hegemony with a domineering 83.95 per cent market share. While the sales of LCV's came down by over 10 per cent, that of multi-utility vehicles plunged by about 19 per cent. Passenger cars recorded a negative growth of little over three per cent during the same period, the AIAM figures showed.

In the luxury car segment, sales of Opel Astra of the General Motors went down by a whopping 61.8 per cent during the period as the company could sell only 1323 cars against 3466 cars sold in the similar period last year.

While sales of Mahindra Ford that makers "Escort" dipped by over 58 per cent at 1298 cars in the period, Pal Peugeot suffered a staggering 85 per cent negative growth. Sales of Premier Automobiles Ltd was also down by over 75 per cent in the same period, as per AIAM figures.

However, Maruti Udyog Ltd continued its smooth drive with a total sales of 1,10,403 cars over 1,07,876 cars it sold during the same period last year, posting a marginal growth rate of 2.34 per cent.

Honda Siel Cars India Ltd, the latest entrant in the luxury car segment with its "City", sold 3377 cars during the period, offering a stiff competition to market leader Maruti.

Sales of almost all players in the multi utility segment was affected with Bajaj Tempo recording a negative 35 per cent growth, Mahindra and Mahindra a negative 8.13 per cent and Telco a negative 32 per cent.

While Telco sold 10,395 vehicles in this segment with a market share of 30.43 per cent, Mahindra and Mahindra Ltd managed a market share of 56.52 per cent with a total sales of 19310 vehicles. Overall, this segment registered a negative 19.05 per cent growth during the period.

But the recession had no impact on the two wheeler segment with the scooters, motor cycles and mopeds recording smart growth rates during the period.

The scooter segment grew by 14.05 per cent and the motor cycles by 22.85 per cent while the mopeds recorded a growth of 8.75 per cent. Scooter sales touched 4.47 lakh during the first four months of this fiscal as against 3.92 lakhs during the same period last year.

Market leader Bajaj had a total share of 49.20 per cent in the period with sales of 2,20.093 units against 1,98,078 units sold last year, up 11.11 per cent.

Maharashtra Scooters Ltd's sales went up by over 51 per cent as it sold 60,193 scooters as against 38,854 units sold during the same period last year. While LML Limited improved its performance by 14.01 per cent at a total sales of 1,13,623 units over 99,653 units sold last year. The market share of LML during the same period was about 25 per cent.

However, Kinetic Honda took a knock in the period with its market share dipping by over 28 per cent and sales coming down to 25,581 units against 35,890 units sold last year.

In the motorcycle segment, except for Eicher group's Royal Enfield motors, all players had better performances to flaunt with Hero Honda continuing to be the market leader with a market share of 38.38 per cent.

During the period Hero Honda sold 1,59,112 bikes (up 28.96 per cent), Bajaj 1,10,104 (up 20.87 per cent) and TVS Suzuki 80,659 (up 27.69 per cent) but Enfield's sales went down to 7,718 units against 8,258 units sold last year.

Moped segment also beat the recession as total sales recorded 8.75 per cent. Bajaj continued its vigorous mood in this segment as well. The company's sales went up by 44 per cent at a sales of 19,380 mopeds and the company clinched a market share of 8.84 per cent from leader TVS-Suzuki with a market share of 48.98 per cent.

While Escorts posted 15.45 per cent growth in sales, Kinetic Engg Ltd recorded a 10.17 per cent growth followed by TVS-Suzuki which recorded 9.74 per cent growth.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


Sardar Sarovar Narmada Nigam Ltd.

Bank of India

Astrosurf
 

Click here for a printer-friendly page Printer-friendly page

Suresh Chand Jain & Sons: Realtors for New Delhi & Gurgaon


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties