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Indica slips in May, MUVs bring cheers

BS Corporate Bureau

Tata Engineering, which has reported losses of over Rs 3.53 billion during the first nine months of the last fiscal, has yet to see any reversal of fortune even in the second month of the new fiscal.

To add to its woes, its passenger car Indica has posted a 7.5 per cent decline in May sales figures, with 4,763 units sold as compared with 5,153 units sold in the corresponding month last year.

Though sales figures of commercial vehicles is yet to be announced, analysts are expecting May truck sales to be lower than that in May 2000.

The sales slump in May follows lower sales in April, when Tata Engineering sold almost half the number of cars as compared with May. Analysts said April sales are usually depressed that follows the heavy buying in March.

However, sales of its multi-utility vehicles at 2,389 units showed an increase of 12 per cent over May last year. Following the success of its limited edition version of the Tata Safari, the company has also launched a premium EX model of the vehicle this month.

The company said the limited edition version of the Safari has been sold out within a month of its launch. Tata Engineering said that following the demand spurt in May for Indica, there has been considerable backlog. As a result, the company is revving up to augment its supplies Indica for the coming month.

The company had recently launched Indica V2, which added new and enhanced car accessories to the original Indica. Production of the earlier model has been stopped.

The Indica reportedly has a market share of 7.7 per cent of the total car market. In the small car segment, it enjoys a market share of 10.5 per cent.

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