Search the Internet          Tips  Sites: Finance, Investment

Another strike hits Qualis sales

NetScribes/Mahesh Shetty

Bangalore-based utility vehicle major Toyota Kirloskar Motor saw another strike hit its monthly sales plan just before close of billings for the month of May 2001.

This strike was at Araco Seating Systems, a feeder unit supplying TKM with seating assemblies for its fast-selling multi-utility, the Qualis.

The strike, which continued for almost two days, led to an estimated loss of production of 100-120 cars. As a result, TKM sold only 2,500 units of the Qualis in May against realistic expectations of 2,600 units.

During the second half of April, another strike at one of its suppliers, Kirloskar Systems Ltd, had upset production schedules and the company sold 2,000 units of the Qualis against the month's target of 2,400 units.

Kirloskar Systems supplies TKM with the differential assembly that goes into the rear axle of the Qualis.

That strike had reportedly affected Qualis production to the extent of 500-650 cars on the basis of a conservative estimate of 90 cars built every day.

The company's plant at Bidadi, located 35-40 km outside Bangalore has the capacity to make 90-100 cars a day.

The company started commercial sales of the Qualis in January 2000 just after it debuted the vehicle at the Auto Expo 2000 at Delhi.

The vehicle went on to beat its year 2000 target of 21,000 units. Calendar 2001, the company has sold approximately 7,300 units as on March 31. Its sales target for calendar 2001 is 35,000 units.

TKM's April 2001 sales of close to 1,800 units was almost 55 per cent higher than the 1,167 units the company sold in the same month last year. May 2001's 2,500 units is a 58 per cent growth over the 1,578 units sold in May 2000.

Money

Business News

Tell us what you think of this report