Auto sector off to a flying start in new fiscal

The new fiscal has started on a positive note for the automobile sector despite concerns on the increase in excise duty and higher raw material costs.

Market leader Maruti Suzuki India reported sales of 93,058 units which marked a 29.70 per cent increase over 71,748 vehicles sold in April 2009. Exports accounted for 13,024 units (6,891 units) with domestic sales taking up the balance 80,034 units (64,857).

The company's A2 segment comprising the Alto, the Wagon-R, the Estilo, the Swift, the A-Star and the Ritz took up a lion's share with sales of 56,416 units, up 20.5 per cent from 46,817 units in April last year. The increase has also been thanks to the Ritz which was launched last May and has been doing reasonably brisk sales.

Similarly, the Eeco, which hit the roads in January, contributed to Maruti's growth in the C segment which also includes the Omni and the Versa. Sales in this product category grew 37 per cent to 10,654 units (7,724 units). Sources say that it is only a matter of time before the Versa is phased out making way for the more successful Eeco though Maruti has not made any official statement on this possibility.

Mid-size category

In the mid-size category, the SX4 and the DZire did sales of 9,994 units, up from 7,066 units in April 2009. The good showing of these two cars in different price points in the C segment has ensured that Maruti has a presence beyond its formidable battery of small cars.

It is also increasingly apparent that the old warhorse, the 800 is on its last lap with sales of 2,258 units down from 2,345 units last year. Maruti is no longer retailing this car in the 13 cities under the Bharat Stage IV umbrella and has confined production to the BS III option.

Hyundai Motor India has also had a good opening to the fiscal with sales of 52,020 units (44,370 units). Of these, the domestic market accounted for 28,501 cars (22,247 units) with exports taking up the balance 23,519 units (22,123 units).

The company's Santro, i10, i20 and Getz took the chunk of April sales with 46,059 units with the mid-size Accent and the Verna chipping in with 5,944 units. Sources say the i20, in particular, has been the best piece of news to Hyundai in the premium hatchback category. The latest variant with a cheaper price tag will only add to the growth momentum of the car, they add.

The company continues to focus strongly on its international business and with new markets in the Asia-Pacific likely to be added to its portfolio, the outlook looks positive. The following year could see Hyundai come out with its low-cost car tipped to be priced around Rs 2.5 lakh.

Nano sales

Tata Motors reported domestic car sales of 24,902 units which included 1,800 cars of its ally, Fiat. This marked a 70 per cent increase from 14,615 units sold in April 2009. Sales of the Nano totalled 3,525 units while the Indica and the Indigo range reported 9,036 units and 7,201 units apiece. The Sumo/Safari accounted for sales of 3,340 units. Exports were 3,137 vehicles in April, over twice as much from 1,261 units last year.

Source: indiacar.com Source : Business Line (Online Edition) (5/2/2010)