Chevrolet India 10.73% sales decline in July, Independence Day benefits of up to Rs. 66,000
During July 2013, the company sold a total of 6,503 units, a decline of 10.73% as compared to the same month in the previous year during which period GM sold 7,285 units in July 2012. At present, benefits of up to Rs. 66,000 is being offered on Chevrolet cars, for Independence Day celebrations.
In the past month, GM sold 2,479 units of Beat, 1,242 units of Sail and 2,235 units of Enjoy. Sales of other models were not upto expectations while the company brought production of Tavera and diesel version of Sail HB and NB to a standstill. General Motors also faces a fine to the extent of Rs 3.4 crore due to violation of technical specifications where emission standards of its Tavera model are concerned. It may be recalled that the company had recalled a total of 1.14 lakh Taveras. In early June, General Motors India stopped production of the diesel Sail and BS III Tavera MPV for a week in relation to emission flaws.
The Transport Ministry will be writing to Governments of both Gujarat and Maharashtra where General Motors have their manufacturing units situated. These Governments will be required to initiate action against the company as per provisions of the Central Motor Vehicle Act. The Act, Section 177 states that violators should be fined INR 100 for first offence and INR 300 for subsequent offences. The fine should hence be around INR 3.4 crores while taking each recalled vehicle as one unit of offence.
Commenting on the sales performance, Mr. P. Balendran, Vice President, GM India said, “Although we have generated volumes for Chevrolet Enjoy and Beat as expected, the overall numbers inclusive of other models were not on the expected lines as we had temporarily stopped production of Tavera and Diesel versions of Sail HB & NB since June. The market also continues to remain subdued due to high fuel prices, high interest rates, various other structural bottlenecks and macroeconomic uncertainties.”