The Hindu Business Line : Maruti sales in reverse gear as exports dip

During May 2005, the company registered 63 per cent fall in export sales, a 42 per cent drop in the sales of its MUVs such as Vitara and Gypsy and a 39 per cent decline in the sales of its bread-and-butter model `M800'.

In the domestic market, however, MUL's sales registered a 5 per cent growth to 40,006 units in May this year compared to the same month in 2004.

The company's total passenger car sales grew 6 per cent, with the steepest increase seen in the A3 segment (Esteem and Baleno) at 2,236 units. In the April 2004-May 2005 period also, MUL reported a 4 per cent fall in sales, again on a substantial decline in export sales and those of the `M800' model.

In May 2005, MUL's sales volume in the domestic A2 segment grew by 23 per cent (including 2,981 units of the company's latest model, Swift, despatched during May).

Analysts said that the decline in `M800' sales this May could be because the company has re-priced and repositioned Alto, thereby making it a more attractive option as an entry-level car. On the impressive 23 per cent growth in the A2 segment sales, analysts said that if the sales of Swift in May 2005 were not included, the growth in combined sales of Alto, Wagon R and Zen had slowed down.

"This could mean that potential customers of cars such as Zen, Wagon R and Alto may be moving away to Swift," they said.

Explaining the highest 48 per cent jump in the sales of Esteem and Baleno, analysts said this could be because of dealer-level promotions. They said the massive decline in export sales last month appeared to be a result of product fatigue in the international markets.

Also, MUL has been trying to juggle domestic and export sales due to capacity constraints, leading to export slump.

Analysts said that there was a possibility that export sales continue to suffer, unless MUL's parent company, Suzuki, comes up with a plan to export Swift from India.

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