Slowdown In Telco Car Output, Sales

Telco has recorded a 25.5 per cent jump in its domestic sales in the first half of the current financial year over the corresponding period in 1995-96. Telco sold 93,552 vehicles in the domestic market during this period as against 81,260 vehicles sold in the first half of 1995-96.

Telco's exports, however, slumped by 12 per cent as the company exported only 5,899 vehicles as against a sale of 6,705 units in the first half last year.

The company suffered a slowdown in the production of Tata Estate and Tata Sierra as only 4,430 units were produced between April and September while it had manufactured 4,972 cars in the first six months of 1995-96. The 10.9 per cent decline in production impacted car sales which slumped by a whopping 24.2 per cent. During the first six months of 1996-97, Telco sold only 2,536 cars while it had sold 3,344 cars in the first half of 1995-96.

 

Both these developments confirm the general slowdown being predicted in the passenger car segment by market analysts. Industry watchers have been predicting a fall in growth of the passenger car segment but what is disturbing is the export dip. However, analysts said exports have never been Telco's strong poin. Therefore, one should wait for export figures of other companies before ascertaining a trend.

Overall production at Telco, however, witnessed a 26 per cent jump over the same period last year, with the company producing a total of 103,883 vehicles as compared with 82,428 units in 1995-96. The company's total inventory of vehicles at end-September represented around 10 days sales and that of its dealers, including vehicles in transit, represented about 14 days sales.