Tata Motors Ltd (TAMO.BO), plummeted in December as tight credit in a traditionally weak month and a slowing economy trimmed demand.

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jihsinco 08 January, 2009 06:37:00

MUMBAI, Jan 2 (Reuters) - Sales by India's largest vehicle maker, Tata Motors Ltd (TAMO.BO), plummeted in December as tight credit in a traditionally weak month and a slowing economy trimmed demand.

Overall vehicle sales dived an annual 47 percent to 25,219 units, while commercial vehicle dropped an even sharper 51 percent from a year ago. Passenger car sales fell 31 percent.

"A deepening recessionary trend in the economy, coupled with continuing credit squeeze and high interest rates, has further depressed customer sentiments. As a result, automobile purchases are being severely impacted," the company said in a statement.

On Thursday, the country's largest car maker, Maruti Suzuki India Ltd (MRTI.BO), in which Japan's Suzuki Motor Corp (7269.T) has a 54.2 percent stake, reported a 10 percent drop in sales.

"Automobile sales are usually modest in December because many consumers try and postpone their purchases to the new year when companies push sales trough heavy discounts and offers," brokerage Sharekhan said in a note on Friday.

All vehicles makers cut prices last month after the government cut excise duty by 4 percentage points but it failed to have any impact.

Top utility maker Mahindra & Mahindra Ltd (MAHM.BO) saw sales fall 30 percent.

Bucking the trend, No. 2 car maker Hyundai Motor India Ltd (HMIL), the wholly-owned unit of Korea's Hyundai Motor Co (005380.KS) saw its sales rise nearly 56 percent in December helped by exports, discount schemes and other incentives.

"We at HMIL have fared better as we have a strong line-up of products in the compact segment which has kept our sales steady," its sales and marketing head, Arvind Saxena, said in a statement, admitting the market was challenging.

India's top three two-wheeler makers showed a further decline in sales. Top bike maker Hero Honda Motors' (HROH.BO) Dec sales fell 10 percent, while No. 2 Bajaj Auto's (BAJA.BO) dropped 29 percent from year ago.

"Just price cuts will not have any major impact. That has to be accompanied by finance, available at cheap rates," said Sharekhan's auto analyst Komal Iyer.

India's central bank cut its main short-term rates again on Friday, the fourth easing of rates since October, and some lending banks have partially passed on the cuts to those borrowing for new homes and cars. [ID:nBOM292196]

Shares in Tata Motors, which fell nearly 78 percent last year, closed up 2.6 percent at 175.35 rupees on Friday on hopes that lower interest rates could boost customer sentiment.

(Reporting by Janaki Krishnan, Editing by Mark Williams)

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Comments (3 posted):

jihsinco on 08 January, 2009 06:42:08

Yulon Group on January 6 has just released the official brand of satisfied Jie-chi Luxgen.

Yulon Group has just officially released on the 6th in the brand's satisfied Moses Czech Luxgen, immediately recruit a big way, in this time of recession, the size of the domestic industry in the layoffs, to take no-pay leave, Luxgen still contrarian massive breakout recruit qualified personnel. Steiner Moses Czech car Hu Kai-chang, general manager of a professional manager's identity said: "The brand needs people to participate, in order to stand on the world stage heart energy, very happy to have the honor to join the Dream Team, but also look forward to all to join elite Luxgen this big family. "

Although the current global economic slowdown, but the Yulon Group's own brand-chi Czech Luxgen satisfied the domestic auto industry is still confidence in the future development, it is hoped that through large-scale recruitment to attract domestic to join the ranks of the automobile industry; and to highlight their own Brand intentions run deep, this is not only to industry-leading pay to attract the maximum protection to join the elite but also the most complete and solid tailored professional training courses to nurture talent.

jihsinco on 08 January, 2009 06:44:09

A crisis of faith in the stock market, Yulon Group elected in 2009 in the beginning, the official publication of brewing their own 5-year car brand "Luxgen satisfied Jie-chi," Chairman Yan Kai-tai said that the creation of independent brands is not only the parents but also self - promise, but also the future of hanging "Luxgen satisfied Jie-chi," the car is not only launched in Taiwan, it is a global market, will initially target China, Russia and the Middle East and other markets, it is necessary to following the Acer, HTC and then create a world-renowned Taiwan brand.

jihsinco on 08 January, 2009 06:45:36

"Luxgen satisfied Jie-chi," the first cars will be equipped with a 2.2 liters engine MPV cars expected at the 2nd quarter of the fastest growing market, promising multi-purpose family car market, this has a seven-seater MPV the price will range from 80 ~ 100 million, and no price war strategy; and paragraph 2 car is a SUV models, time to market for the end of this year or early next year; In addition, MPV cars will also be launched A top CEO for groups of high-grade cars, the price will be broken in one fell swoop Biao 1,500,000 yuan; At the same time, "Luxgen satisfied Jie-chi" will also catch the latest electric vehicles, once excluded from the weight of battery and charging technology issues, will be introduced Taiwan's first Chinese-made electric vehicles.

Not only in vehicles with brand new concept and a very important aspect of marketing services to some, especially to get a large car industry veteran Hu Kai-chang as "Luxgen satisfied Jie-chi," the general manager, Hu Kai-chang said that the petition presented unique pathway a way to break the exhibition center is only the impression of traditional car sites, but will create a "living museum car" to provide guests with the personal level of courtesy, including through the "theater experience" for consumers, introduced a clear understanding of car, "FOYU Area "is the personal and exclusive audio-visual space, owners can keep abreast of the progress of the car.

To create a new brand, Yan Kai-tai said that at present invested capital of about NT 70 ~ 80 billion increase in the future, including setting up factories and equipment, the total amount of at least about 25 billion yuan.