The Hindu : Telco, Leyland boost sales

Online edition of India's National Newspaper
Tuesday, Aug 06, 2002

Business

Business

Telco, Leyland boost sales

NEW DELHI AUG. 5. Commercial vehicle sales soared by 37.2 per cent during the first quarter of this fiscal, which analysts say has sent a positive signal but will be difficult to sustain if drought conditions continue. Total sales rose to 38,971 vehicles during April-June 2002-03 from 28,398 units a year ago, data compiled by the Society of Indian Automobile Manufacturers (SIAM) show. The growth was witnessed in both medium and heavy (M&H) as well as light commercial vehicles (LCVs) segments.

While M&H sales went up by 33.8 per cent to 23,076 vehicles (17,240 units), that of LCVs surged by 42.4 per cent to 15,895 units (11,158 units). The rise in M&H sales was contributed largely by goods carriers, which is a good indicator of economic recovery. Goods carriers sales jumped by 45.7 per cent to 18,406 units (12,630 units) due to good performance by the two biggest players — Tata Engineering and Ashok Leyland. While Tata Engineering posted a 63.8 per cent rise in sales at 12,328 vehicles, Ashok Leyland recorded a 18.5 per cent growth at 4,805 vehicles during the review period.

Sales of Eicher Motors witnessed a 29.7 per cent increase at 1,042 units (803 units) but that of Swaraj Mazda suffered a 7.2 per cent drop at 231 units (249 units).

M&H passenger carriers recorded a marginal 1.30 per cent growth at 4,670 units (4,610 units). Ashok Leyland posted a 11.2 per cent rise at 2,368 units, while Tata Engineering witnessed a 7.2 per cent dip at 2,302 units.

According to analysts, increase in freight rates and margins coupled with 20 per cent rise in year-on-year intra-State trade had pushed up sales in the first quarter.

They however, cautioned that drought conditions in major markets such as Northern and Western India could hit sales in the remaining quarters of this fiscal.

In the LCV segment, sales of goods carriers rose by 43.2 per cent to 11,470 vehicles during the period under review (8,009 units). In this category, sales of Tata Engineering and Mahindra and Mahindra (M&M) were higher by 43.5 and 57.5 per cent to 5,196 and 4,010 units respectively. Swaraj Mazda's sales also shot up by 70.1 per cent to 1,145 units (673 units).

However, Bajaj Tempo and Ashok Leyland posted declines of 37.6 per cent and 38.4 per cent to 248 units and 24 units respectively. Eicher and Hindustan Motors recorded 18.5 per cent and 0.76 per cent rise at 715 units and 132 units respectively.The analysts attributed the growth in LCV sales to increase in intra-State trade and city transport.

Sales of light passenger carriers were higher by 40.5 per cent at 4,425 units (3,149 units). Sales of Tata Engineering went up by 44.2 per cent to 1,551 units (1,068 units) while M&M posted a 47.2 per cent rise at 1,103 units (749 units).

Hindustan Motors and Bajaj Tempo also recorded growth of 14.3 per cent and 9.1 per cent to 684 units and 346 units respectively. Swaraj Mazda witnessed a 9.5 per cent rise in sales at 321 units (293 units) and that of Eicher Motors' sales went up over four-fold to 388 units. — PTI

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