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Honda City hits a speedbreaker

By , agencyfaqs!, New Delhi | In Advertising | July 03, 2000
Honda Siel Cars India Ltd buckled under the impact of uniform 12 per cent sales tax as sales of its mid-sized car City dropped 11.2 per cent in June 2000.

agencyfaqs! News Bureau
NEW DELHI
Honda Siel Cars India Ltd (HSCI) buckled under the impact of uniform 12 per cent sales tax as sales of its mid-sized car City dropped 11.2 per cent in June 2000. Last month it sold 801units down from 903 units the previous month. However, the June 2000 sales represented a 6.8 per cent growth over 750 units sold in June 1999, the company claimed.
During the first two months of the current fiscal, the company sold a total of 1,826 units, up 38.9 per cent from 1,314 units a year ago.
Its aggregate sales for the first quarter of the current fiscal stand at 2,627 units. This is up 27.2 per cent from 2,064 units in the same period a year ago. March had represented the third successive month when the company had sold over 1,000 units.
The company ended June with a 12.9 per cent share of the mid-sized car market, down from 19.2 per cent a year ago, the company revealed. It had recorded a 24.3 per cent surge in sale of City in May 2000, at 903 units, compared with the same month last year. The May 2000, sales was, however, 2.1 per cent lower than 923 units in April 2000.
The company had sold 9,698 units during the entire 1999-2000 fiscal, missing the 11,000 sales target by 1,302 units. Sales for the fiscal was up by only 67 units from the previous year's 9,631 units.
The sales were achieved through a network of 20 Honda exclusive authorised dealers (heads) spanning 17 cities. The network is scheduled to expand further and cover more cities.
© 2000 agencyfaqs!