The Hindu Business Line : Eicher's Sept sales dip due to vendor's labour trouble

SALES for commercial vehicle manufacturer Eicher Motors Ltd (EML) fell by 11.5 per cent in September due to disruption in supplies from a key component supplier following a labour strike.

The company sold 1,120 vehicles during the month against 1,254 vehicles in the same month last year.

For the first six months this fiscal, sales grew by 7.4 per cent to 6,232 vehicles from 5,799 vehicles a year earlier.

Commenting on the company's sales performance, Mr Rakesh Kalra, Chief Executive, EML, said, "The sales in the first half would have been significantly higher but for the fact that sales in the months of August and September were severely constrained by disruption in supplies from a key vendor on account of labour unrest."

He said the disruption in supplies has particularly affected the availability of the company's recently launched heavy commercial vehicle `Eicher Jumbo 20.16'.

Mr Kalra expressed confidence that this situation would get corrected soon and EML would be able to significantly step up volumes in the second half of the year, as the order position of the company is very healthy.

Exports are also expected to gather momentum in the coming months.

Eicher Motors Ltd is part of the Rs 1,300 crore Eicher group.

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