The Q3 Motor Show
Automobile sales in the third quarter of 1997-98, provided by the All India Automobile Manufacturers provide ample reasons for the downslide.
A slowdown in industrial activity has led to production and sales of medium and heavy commercial vehicles (M&HCV) dropped by 20.9 per cent and 29.3 per cent respectively in the first half of 1997-98. Average monthly production has been cut to 5,430 vehicles in the third quarter against 9,362 vehicles in the first half, in a bid to lower inventory pile-ups. Sales continue to deteriorate, falling by 50 per cent over the third quarter of the previous year.
Telco has reduced its average monthly production in the third quarter to 3,928 vehicles from 5,764 vehicles in the first half. A drop in sales of M&HCVs by 31.3 per cent and consequent inventory pile up in the first half were the causes. Quarterwise comparison reveals a drop in production by 68.9 per cent to 8,855 vehicles. Sales in the third quarter declined by 55.2 per cent.
The LCV segment was saved by the Sumo in the first half of 1997-98, as sales dropped marginally by 3.3 per cent. However, a slowdown in Sumo sales in the third quarter saw Telco's LCV segment see a 11.6 per cent drop in sales. This affected the overall segment sales, which declined by 6 per cent in the third quarter to 31,289 vehicles.
Sales growth in the passenger car segment too slowed down. Against 13.9 per cent growth in the first half, the nine month period saw lower sales growth of 9.8 per cent (DCM Daewoo figures have been excluded). This is in line with Maruti Udyog's performance which accounts for 80 per cent of the total passenger car market.
Despite a drop in sales of scooter and mopeds by 7.6 per cent and 10.1 per cent respectively, two wheelers segment escaped with a 2.5 per cent sales drop in the first half. This was due to the 10.6 per cent growth attained by the motor cycles segment, buoyed by 52.9 per cent growth achieved by Hero Honda.
With Hero Honda improving its nine month growth to 57.9 per cent, taking motor cycle sales growth to 14.8 per cent, the two wheeler segment ended the nine months with a sales growth of 2 per cent. A strong performance in the current fiscal saw the share of motor cycles increase to 36.3 per cent of the two-wheeler segment, against 31.4 per cent in the previous year.