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MUL sales slide; lean patch temporary, says co -- `Price cuts will help boost sales'

Our Bureau

NEW DELHI, July 3

MARUTI Udyog Ltd (MUL), the country's largest passenger car manufacturer, has recorded sales of 14,967 units during June this year, down from the sales of 23,469 units recorded during the corresponding period of the previous year.

However, these sales figures have to be viewed in the light of the fact that MUL's plants were operated only for 15 days in June this year and for 21 days during June last year.

According to a MUL release, despite a truncated month, the company has again topped the B-segment (Zen & Santro category) during June this year, with sales of 5,152 units. Of this, the sales of the Zen constituted 3,972 units and that of the Wagon-R was 1,180 units.

Sales of the Maruti 800 and the Omni van, the only two vehicles in the entry-level car segment, where MUL is a virtual monopoly, has fallen to 8,568 units during this June, from a total of 17,486 units during June last. Of the June 2000 sales of 8,568 un its, the Maruti 800 constituted 5,298 units and the Omni 3,270 units.

Maruti has also sold about 995 units in the mid-size, luxury segment of the car market during June this year. Of this, Esteem sales was about 756 units and that of the Baleno was 239 units. This was compared to Esteem sales of about 1,323 units during Ju ne 1999.

The MUL release added that ``the temporary lean patch witnessed by the company on account of the uncertainty in the market over the sales tax issue and rumours of a sales tax roll back is a thing of the past, as recent initiatives taken by the company ar e showing encouraging results in the market.''

MUL is already receiving feedback of enhanced inquiries and retail sales at its dealerships, the company has said. The release also mentioned that the good response to the price cuts will help the company to go in for a second shift in its third plant in Gurgaon, near Delhi, thus enhancing production capacity by 15 per cent.

Maruti had recently effected downward price revisions ranging from Rs. 10,000 to over Rs. 25,000 on the Maruti 800, the Omni and the Wagon-R.

MUL also felt that the adverse impact due to tax induced increase in prices and the resultant uncertainty, is evident across the entire automobile industry with an overall decline in the automobile market since April this year. The monthly passenger car sales figures also reflect this trend with sales at 68,787 units in March 2000, 52,978 units during April, 50,369 units during May and approximately 35,000 units during June this year.