Wednesday, July 06, 2011
By Pranjal Gera
Maruti Suzuki, Tata Motors sales affected by Rivals
Inflation, Increase in Interest loans and increasing Fuel costs is having an impact on automobile sector and the two of India’s leading car makers Maruti Suzuki and Tata Motors reported a fall in their sales figures in the month of June.
India’s largest car maker, Maruti Suzuki reported a drop of 23% in its sales as the company sold 20,000 units less in June than its sales in May. The company had to face agitation by the workers at its plant in Manesar and so it effected the production of its sedans Maruti SX4 and Maruti Swift Dzire. Followed by, company’s planned shutdown at its Gurgaon plant for maintenance.
Toyota Kirloskar Motors sales jumped 94% in June with sale of 5,002 units of its sedan Toyota Etios and 1,400 units of Toyota Liva hatchback already being booked. Since its launch, Ford Figo sales increased by 8% and the company delivered its 1,00,000th Figo.
The scrappage incentive scheme, ended by European countries also affected Maruti Suzuki. The scheme was a bonus for buyers dumping their old polluting vehicles for new ones. The company’s exports dropped 23.7%year on year in the April-June this year.
Despite its new launches and fresh marketing campaign, Tata Motors too failed to impress Indian buyers. Company’s new launches are Tata Aria crossover, Tata Indigo Manza sedan, and Tata Indica V2 hatchback. Tata Indica sales dropped by 9 % and Tata Manza sales fell by 35% year on year in June.
According to Auto experts, Toyota Etios, Toyota Liva has affected sales of Maruti Swift and in near term Hyundai i10 and Hyundai i20 will be its competition. With new launches later this year like Chevrolet Beat and Honda Brio there will be additional pressure on Maruti Suzuki’s sales.
Maruti is looking forward to its revamped Swift to revive company’s sales in the country.
Reported by Industrial sources, sensing the pressure on the company, Edelweiss Capital has advised investors to reduce Maruti’s shares. Sharekhan has hold on Maruti Suzuki though.
Auto experts expects Tata Motor’s Land Rover and luxury Jaguar holding its ground overseas and are looking forward for launch of Range Rover Evoque in September.