Maruti Udyog records 30% jump in sales during first month of current fiscal

NEW DELHI, MAY 7: Bucking the recessionary trend in the auto sector, Maruti Udyog Ltd (MUL) recorded a 30 per cent jump in sales during t...

NEW DELHI, MAY 7: Bucking the recessionary trend in the auto sector, Maruti Udyog Ltd (MUL) recorded a 30 per cent jump in sales during the first month of the current fiscal, selling 30,372 vehicles as against 23,377 in the same period last year.

According to the data compiled by the company, the growth realisation was mainly due to an impressive 48 per cent increase in sales of its popular Omni model followed by Zen (31 per cent ) and Maruti-800 (25 per cent). The company sold 6668 Omni vans in April this year as compared to 4509 units in the corresponding month last year.

The company, which is facing a tough competition due to entry of several new players and introduction of several new models by the old manufacturers, got a further jolt following the Supreme Court’s recent order banning registration of private (non-commercial) vehicles not conforming to Euro norms in the national capital region (NCR).

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MUL is working hard to comply with Euro-I and Euro-II norms as none of its models – Maruti 800, Zen, Omni, Gypsy and Esteem – meet even Euro-I emission norms.

On the other hand, its competitors such as Hyundai and Daewoo are either complying with the norms or are in the process of meeting those standards by month end.

MUL has tied up with Denso of Japan to produce multi-point-fuel-injection (MPFI) system, an essential part of the engine for achieving Euro-II norms. But the start of actual production of kits would take some time, company sources said.

In the meantime, it is exploring the possibility of importing these kits but it may be a costly affair for the company. Keeping in view the tough competition and continued recessionary trends, it would be difficult for Maruti to pass on the entire increase in cost to customers, sources said.