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Honda City sales up 125 pc in March

Honda Siel Cars India Limited sold 1,359 units of its mid-size Sedan 'City' during March 1999, which represents a 125 per cent surge over February and marks the highest sales figure by the company in a single month since its launch in January 1998.

With this, the company closed its first full fiscal 1998-99 with a sales figure of 9,631 units. HSCI has, since its launch, sold 10,971 units.

Market feedback indicated that Honda City has achieved a market share of 22-23 per cent of the mid-size car market in 1998-99.

The sales performance of Honda City during 1998-99 and particularly in March 1998 is far more credible in view of the prevailing market and demand conditions especially in the premium car segment. The mid-size and luxury segment has been showing a negative growth trend in 1998-99 over the previous financial year, the company claimed.

During the first three months of its launch, HSCI sold 111, 369 and 860 units respectively.

During April this year, the sales dropped slightly to 667 units but moved up again the very next month to touch 859. In June, it touched an all-time high of 1,195 units. However, in July, sales dropped with the company announcing a hike in the price tag of its cars pursuant to the announcement in the Union Budget 1998-99.

But retails looked up from August and was on the upswing for two months before crashing again to 554 in October.

Sales figures improved for a month in November, to drop again in December, the final month of 1998 calender year. The final quarter of the fiscal opened on an optimistic note with sales picking up again. It, however, skid slightly in February but surged ahead in March to close the month with 1,359 units.

HSCI is a joint venture between Honda Motor company of Japan and Siel Limited, India. The Honda City is being manufactured at its Greater Noida facility in Uttar Pradesh, which has an installed capacity of 30,000 cars per annum (on two shifts basis).

The total investment envisaged for the project is about Rs 8.5 billion in a span of five to seven years, of which Rs 500 million has been invested so far.

HSCI has 19 Honda exclusive authorised dealers (heads) operating in 16 cities currently. The head network would expand to cover more cities in due course.

Honda City was recently ranked the 'best mid-size car in initial quality' and the 'most appealing mid-size car' by J D Power and Associates, one of the world's premier marketing information company.

UNI

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