Swaraj Mazda Revenue Up 25 Per Cent

However, according to the annual report, despite a strong demand, growth in sales volumes has been sedate during the period.

The main reason for the lull in sales is that the market continues to be dominated by a severe fund shortage and consequential high interest.

The report states that the recent hike in excise duty on LCVs to the tune of almost Rs 20,000 per vehicle has also added to customer resistance.

The company is banking on the recently announced measures to ease the liquidity crunch, expecting them to percolate to the retail finance level.

According to the company, as economic and industrial growth continue to display strength, monsoon being good and interest rates generally peaked, it is envisaged that the market will improve after September.

 

The company operations are expected to register reasonable growth over the year given the advantage of wide product range with a distinct customer preference in some high value segments.

SML's operations had achieved a noticeable turn around during the financial year 1995-96.