Jan 4, 2000|
Passenger car sales on the upswing
Passenger car majors have reported significant sales growth in December 1999. This is attributed largely to an increase in disposable incomes.
In a surprising development, for the first time since inception, Matiz (Daewoo Motors) has clocked higher sales than Santro (Hyundai). Daewoo Motors claims that in December, it had bookings pushing 6,400 units. This marks a 220% leap over bookings in November 1999. The company despatched 4,045 units of Matiz (including 225 units in the export market). This was reported by a leading financial newspaper.
Santro on the other hand witnessed a 19% decline in sales to clock sales 5,075 units in December 1999 (6,301 units in November 1999). This is the first time the company has witnessed a decline in sales since inception more than a year ago. Santro's decline could continue into the new year as Hyundai has hiked Santro's price by 4-5% to meet the increase in operational costs.
Santro's sales drop saw Indica grabbing the second position with sales of 5,320 units (5,214 units in November 1999).
The story in the mid-sized segment is equally surprising. Ford's latest offering - Ikon has witnessed impressive growth surpassing heavyweights - Maruti Esteem and Hyundai Accent. Ikon registered sales of 1,677 units compared to 1,602 units of the Esteem and 1,019 units of the Accent. The Ikon has done very well for itself with bookings touching 5,360 units since its launch in November 3, 1999. The most important factor that has gone in the company's favour is its competitive pricing. Moreover, its looks and performance have won the company rave reviews, and have excited considerable consumer interest.
Growth in the passenger car segment is very encouraging and is an indicator of the economic upturn, which has fuelled demand. With the stock markets also witnessing one of the strongest rallies, consumers are flush with funds. On the back of an increase in disposable incomes, consumers are buying white goods and consumer electronics (TVs, audio products) and cars in large numbers.
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