Maruti September sales rise 20.58 per cent

Volume growth for passenger car market leader Maruti Udyog remains strong and monthly volumes for September has come in close to analyst expectations. The company has reported total sales of 59,420 units for the month of September 2006, including exports of 2,814 units, as compared to 49,278 units during September 2005 - an increase of 20.58 per cent. On a sequential basis, sales have increased 14.59 per cent from 51,855 units reported for August 2006.

Total domestic sales for the month increased by 22 per cent to 56,606 units from 46,393 units a year ago. Domestic sales for the month have increased 17.3 per cent sequentially from 48,259 units during the previous month.

The premium hatchback (or B segment in industry parlance) remained the best performer for the month. Volume growth in the segment, which includes models like Alto, Zen, Wagon-R and Swift, increased 28.9 per cent to 37,955 units for the month as compared to 29,456 during September 2005. On a sequential basis, sales in this segment have increased 16.91 per cent.

The re-launched Wagon-R is reportedly receiving very good response in the market. The model is now also available in a petrol-LPG dual fuel version which offers lower running costs.

Sales of entry level model Maruti - 800 increased modestly by 3.5 per cent to 7,680 units as compared to 7,423 units for September 2005. Sales for the month were 19.53 per cent higher than August 2006. Analysts reckon that Maruti is keeping the model alive to fight the low-cost car from Tata Motors expected in early 2008. They expect prices of Maruti - 800 to be cut substantially to take on the Tata car.

In the passenger van segment, the company recorded a growth of 21 per cent with sales of the Omni and Versa increasing to 7,289 units as compared to 6,022 units for September 2005.

Sales growth in the mid-sized sedan segment remained modest at 7.6 per cent. Sales of Esteem and Baleno were at 3,410 units as compared to 3,168 units for September 2005. The company is readying to launch a new model to replace the Baleno in the mid-size sedan segment. Road tests are reportedly going on and a formal launch is expected by early next year.

Exports declined modestly by 2.5 per cent for the month and monthly export volumes went down to 2,814 units from 2,885 units. Exports would get a leg up once Suzuki starts sourcing more cars from Maruti's new plant, which is under construction. Maruti would also start supplying cars to Nissan at a later date, under a production alliance between Suzuki and Nissan.

The sales figures for September 2006 are given below:

Segment	Models	For September			Till Sep			April'05 - March'06
		2006	2005	% Change	2006-07	2005-06	% Change
A1	M800	7680	7423	3.5%	40445	40214	0.6%	89223
C	Omni, Versa	7289	6022	21.0%	37332	32232	15.8%	66366
A2	Alto, Wagon-R, Zen, Swift	37955	29456	28.9%	191197	154504	23.7%	335136
A3	Baleno, Esteem	3410	3168	7.6%	15960	14935	6.9%	31939
Total passenger cars		56334	46069	22.3%	284934	241885	17.8%	522664
MUV	Gypsy, Vitara	272	324	-16.0%	1688	1751	-3.6%	4374
Domestic		56606	46393	22.0%	286622	243636	17.6%	527038
Export		2814	2885	-2.5%	16009	18773	-14.7%	34784
Total sales		59420	49278	20.6%	302631	262409	15.3%	561822