Indica sales slow down

Indica sales slow down

JAN 4: After Maruti, it was the turn of Telco to announce a slow down in its car sales. Sales of Tata's Indica continued to fall with its sales for December 2000 falling to 2243 units from 2424 units sold in November last year. In the first nine months of the current fiscal, Telco went up negligbly to 31,958 passenger cars as compared to 31,834 units sold in the same periof of last fiscal.

But, despite sagging fortunes, the Telco scrip moved up on the Bombay Stock Exchange on rumours that the company is hiving off its car project as a separate company. The Telco share price price has been a firm feature of the market over the last couple of trading sessions. After surging 8 per cent yesterday, the scrip gained another 2 per cent plus today to Rs 104.75 on a huge volume of 22 lakh shares in the first hour of trading on BSE.

While the Tata group shares have become favourites on the bourses these days, there are talks again that the Telco car project may be hived off or a joint venture will be entered into. The scrip rise is despite the fact that the company doing very badly in its mainstay - the commercial vehicles business.

A sales tax rationalisation by Maharashtrae governments has hit its sales. In the first eight months Apr-Nov.2000, medium and heavy commercial vehicles (M&HCV) sales have declined by 25 per cent to 31,451 vehicles from 42,023 in the corresponding period of the previous year. While it is not doing well in its mainstay M&HCV business, the capitalisation of Indica small car project continues to bleed Telco's financials.

Meawnhile, Hyundai Motor, registered an increase in sales to 59,051 units from 45,229 units during April-December 1999-2000. Even Ford India which launched its Ikon model with a marketing and advertising blitz, has exceeded its year 2000 sales target of 21,000 by recording sales of 22,849 Ikons.

The company sold 2,595 Ikons in December, posting an increase of 54.7 per cent over the 1,677 numbers in December, 1999. This included an export sales of 1,785 cars during the month. Overall, Ford India has captured a 21 per cent market share in India, a Ford statement claimed.