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Maruti market pie shrinks to 54% in April-May; Daewoo, Hyundai in top gear

Increasing competition and imposition of uniform sales tax pulled down Maruti Udyog Limited's market share to an all-time low of 54 per cent in the first two months of 1999-2000 and sales dropped by 11.5 per cent, while Daewoo, Hyundai, Tata Engineering and Honda-SIEL saw sales move into top gear during the period.

FIAT India saw sales of its passenger cars drop by 25 per cent during the period, according to sales figures released by Society of Indian Automobile Manufacturers, or SIAM.

Hyundai continued to be the second largest car maker in the country with a 14 per cent market share, while Daewoo moved up to the third slot with a 10.4 per cent share of the market. Tata Engineering settled with a 9.8 per cent share.

Maruti sold 57,549 units during April-May, 2000, down from 65,031 units a year ago. The company had a 72 per cent market share in April-May, 1999. MUL's market share in May 2000, was even lower at 52 per cent with sales of 27,533 units. Its multi-utility vehicle sales in this fiscal declined by 73 per cent to 287 units from 1,073 units a year ago.

Hyundai sold a total 14,866 units in the first two months of this year, up 84.6 per cent from 8,050 units a year ago, while country cousin Daewoo Motors sold 11,100 units, a two fold increase from 3,255 units in the corresponding period of the previous year.

Tata Engineering sold 10,404 units, up 149 per cent from 4,173 units a year ago.

Ford India and General Motors India, riding on the increasing demand for their respective new offerings, were the only other car manufacturers to have recorded a growth in sales during the period. Ford sold 3,184 units of Ikon during the two-month period (up from 345 units a year ago), while General Motors India sold 1,133 units, up from 382 units a year earlier.

The SIAM data revealed that Fiat India Automobiles Limited, or FIAL, sold 2,292 units of Uno and Siena during the period, down 25 per cent from 3,081 units a year ago. Mercedes-Benz India Limited saw its sales drop 43 per cent during the two-month period at 125 units from 220 units a year earlier.

Hindustan Motors' sales declined slightly and closed the period at 3,613 units, down two per cent from 3,688 units in the previous year.

Honda SIEL cars continued to record good demand for its mid-sized City as sales recorded a 38.9 per cent growth at 1,826 units, up from 1,314 units last year.

In the multi-utility vehicle, or MUV, segment, barring Tata Engineering, all other manufacturers recorded a drop in sales during the first two months of this fiscal.

Tata Engineering sold 4,611 units during the period, up 12.9 per cent from 4,084 units a year ago. Toyota-Kirloskar sold 3,099 units during the period.

Mariti's MUV sales declined 73 per cent at 287 units, while Hindustan Motors sold 286 units during the period, down 35 per cent.

Bajaj Tempo sales dropped 29 per cent at 727 units, and market leader Mahindra and Mahindra closed the period with a 9.9 per cent decline in sales.

India's commercial vehicle sales grew 8.15 per cent in May this year to 11,545 units from 10,675 units in May last year, the SIAM data indicated.

UNI

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