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Saturday, April 2, 2011

Maruti, Hero Honda, Toyota, M&M, Nissan sales end fiscal year in top gear

NEW DELHI: Indian automobile manufacturers ended fiscal year 2010-11 on a high note. Most leading car and two-wheeler companies posted record sales, as rising disposable income with the middle-class and a pick up in new product launches kept the demand momentum going, despite price hikes.

The country's largest carmaker Maruti Suzuki and number one two-wheeler manufacturer Hero Honda posted their best-ever monthly and fiscal sales numbers despite pressure from rising interest rates and soaring crude-oil prices.

Maruti Suzuki reported 28% year-on-year growth in sales to 121,000 units in March, which includes all-time high domestic sales of 110,000 units, up 39%. The company's A2 segment vehicles, including Alto, WagonR, Estilo, Swift , A-Star and Ritz, witnessed 43% sales growth to 78,460 units. In April-March 2010-11, the company's total sales stood at 11.32 lakh units, up 30% from a year ago.

Toyota Kirloskar Motor sold a record number of 9,726 units in March, a growth of 41% year-on-year, led by 3,257 units sales of its sedan Etios. Mahindra & Mahindra registered 19% growth in its passenger car sales during the month to 17,320 units, while new entrant Nissan Motor sold 2,101 cars, including 2,060 units of its hatchback Micra. Czech carmaker Skoda Auto posted 65% year-on-year jump in sales to 3,009 units.

However, some like Hyundai Motor , the country's second-largest carmaker, could not quite cash in on the customer enthusiasm due to rising input cost. Hyundai Motor's domestic sales in March remained flat year on year at 31,822, while exports grew a tad by 0.9% to 23,526 units. Its total sales in March were up a mere 1% to 55,552 units.

"We managed to grow our overall volumes but the rate has slowed down signalling tough times ahead," Hyundai's director, marketing and sales, Arvind Saxena, said.

The two-wheeler segment was also on the fast track with Hero Honda selling a record 515,852 bikes in March. For the full year, the company posted its highest ever sales number of 54.02 lakh, up 17% year-on-year. Chennai-based TVS Motors sold 191,000 units in March, up 28%.

Fiscal year 2010-11 was the best year for the Indian automobile industry, but further rate hikes by the Reserve Bank of India could weigh on sales in the year ahead, said industry experts and analysts.

However, some analysts have a more optimistic take on the sector for the months ahead. According to Umesh Karne, analyst with Brics Securities, even if the central bank hikes key rates by 50-100 basis points, it will not likely be an immediate dampener for the automobile sector, though any further rate increase could hit car sales in coming months.

"For FY12-13, Indian auto industry is likely to record a volume growth of 14%, with passenger cars expected to be the leader. Growth will be fuelled by urbanisation and rising per capita income," said Karne.

economictimes.indiatimes.com

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