Business Daily from THE HINDU group of publications
Monday, Aug 13, 2007
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Business Daily from THE HINDU group of publications Monday, Aug 13, 2007 ePaper |
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Automobiles Corporate - Outlook Marketing - Trends Auto sector witnesses mismatch in sales versus retail offtake
Priyanka Vyas New Delhi, Aug. 12 Perception is reality, but in the case of the auto industry it may not be so. The data put out by companies and industry associations indicate that two-wheeler sales have been on a decline, while four-wheelers continue to post a robust growth. However, according to dealers and vehicle finance companies, it is the two-wheeler industry that is witnessing improvement in retail sales although the dispatched numbers show an overall fall. Retail Sales
In contrast, vehicle finance companies estimate that the four-wheeler industry, which is showing an 11 per cent growth at the dispatch end, is estimated to be growing at 7-8 per cent on the retail front. The disparity between dispatch and retail numbers is attributed to a correction in the stock levels. “While the industry has been down by 11 per cent in motorcycles, our retail sales for the period have been better than the dispatched number with a difference of as much as 5 per cent,” said Mr Anil Dua, Vice-President, Sales and Marketing, Hero Honda. “In the case of two-wheelers, retail is moving at a faster pace now which is due to some amount of correction at the inventory level. Hence, the drop may be lower than the decline showing in absolute numbers,” said Mr N.R. Narayanan, Group Business Head, Vehicle Finance, ICICI Bank, adding that this would eventually lead in to better billing for the manufacturers. Billing Rate
Mr Amit Nandi, General Manager-Marketing at Bajaj Auto, also said that retail sales seem to be healthier than the billing rate, although he declined to comment on company specific numbers. While, Mr Rajan Pental, Senior Vice-President, Auto Loans, HDFC Bank, commented that after a slack season in the monsoon months, in the coming festive season wholesale numbers are likely to match retail numbers.
Related Stories: Four-wheeler sales post double-digit growth in July Downhill ride for auto sector? Two-wheeler sales continue to skid Two-wheelers, heavy vehicles sales dip in May More Stories on : Automobiles | Outlook | Trends
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