The Hindu Business Line : Can the top 3 automakers zip past the million mark?

With the top three automobile manufacturers in the country - Maruti Udyog, Tata Motors and Hyundai Motor India - having reported cumulative sales of 6.47 lakh units for the first eight months, January-August 2006, the million mark for the year 2006, is within their grasp, collectively.

The industry data released by the Society of Indian Automobile Manufacturers (SIAM) puts the big-three auto companies' growth at 15 per cent over the corresponding period last year. In 2005, the top three did sales of 8.54 lakh units. Even without the boost provided by sales in the months of September-October, traditionally a robust period for auto sales, thanks to tax breaks and festival purchases, they are within sniffing distance of the coveted one million mark. Sustaining a 15-per cent growth over the last year's number would give them a sales volume of 9.72 lakh units.

Or looked from another angle, the last four months gave them in 2005, a little more than half the volumes achieved in the first eight months. By that yardstick, a performance of 6.47 lakh units in the first eight months of 2006 should seem them touch the 9.70 lakh mark by the end of the year.

Moreover, new product launches can provide the extra zip to touch the magic one million number. Maruti is most likely to introduce the new Zen (MR Wagon) by October-end while the much-awaited Swift Diesel is expected by November-end. These models will offer volumes to easily drum up higher sales.

Tata Motor's new Dicor engine for the Indigo family is likely to overcome the dip in sales the company recently posted. Hyundai Motor India is about to introduce the `Verna', a C - plus entrant to compete with the likes of Fiesta, Aveo and the City by September - end; the Verna is a marginal player but could add on to the upper mid-size segment.

The company has plans to introduce the Sonata diesel by October-end.