Ford, Honda post loss in 2009-10 despite higher sales

Ford India has posted a higher loss in 2009-10, Honda Siel Cars has cut its losses while Hyundai Motor India has almost doubled its profit for the year. All the three companies sold more vehicles in 2009-10, over the previous year. Ford India's vehicle sales were up 34 per cent, Hyundai Motor India's 22 per cent and Honda Siel Cars' 18 per cent.

Toyota Kirloskar Motor sold 63,824 vehicles during the year and reported a profit of Rs 309 crore on income of Rs 5,790 crore.

Ford India's accumulated loss

Car market leader Maruti Suzuki sold 1.01 million cars during the year and reported a profit of Rs 2,498 crore on an income of Rs 29,623 crore. Tata Motors sold 260,020 cars and utility vehicles during the year.

According to Ford India's annual report, the company has an accumulated loss of Rs 1,096 crore. Ford India has increased its manufacturing capacity from one lakh cars to two lakhs.

It has also set up a new engine plant with a capacity of 2.5 lakh units a year, which started assembling engines from January 2010.

The company launched the Figo, a small car, in March. At the end of October, the Figo's sales have crossed the 50,000-mark.

During 2009-10, Ford India exported completely built-up Fiestas to South Africa and Ford Ikon components in knock down condition to South Africa and Mexico. The value of exports stood at Rs 97 crore. Ford India has since started exporting the Figo to South Africa and Nepal, and plans to export it to West Asia, northern Africa, Mexico and South America.

Honda's plan

Honda Siel Cars' annual report says that fiscal 2010-11 is critical and the company's long-term growth depends on how it prepares itself for the future. The company is developing a new small car with India as the lead country for its development. The car, which was globally unveiled at the Delhi auto expo in January, is scheduled for launch next year.

According to the annual report, the company paid a royalty (to Honda Motor Company, which majority owns Honda Siel Cars) of Rs 160 crore (Rs 156 crore) and donations of Rs 1.05 crore (Rs 1.73 crore). The donations include Rs 10 lakh (same as the previous year) to the BJP and Rs 5 lakh (previous year nil) to the Congress, as contribution for political purposes.

Hyundai pays higher royalty

Hyundai Motor India's annual report shows that the company has declared a dividend of Rs 122 crore (same as the previous year). Its royalty payment amounted to Rs 465 crore (Rs 427 crore). The company is a wholly owned subsidiary of Hyundai Motor Company of Korea. During 2009-10, the company fully repaid Rs 1,991 crore borrowed from various banks and financial institutions towards short-term working capital requirements.

Its subsidiary Hyundai Motor India Engineering Pvt Ltd reported a profit of Rs 65 lakh on an income Rs 58 crore against a profit of Rs 1.4 crore on an income of Rs 25 crore in the previous year.