However, sales volumes continued to decline on a month-on-month basis. Sales volumes were lower by 4.17 per cent from 48,425 units reported for July 2006. The company had reported a month-on-month decline of 9.31 per cent for the month of June 2006.

Main reason for the sluggish growth in sales volumes was a massive 58.2 per cent decline in exports to 1,755 units from 4,203 units reported for the corresponding month of previous year. Decline in sales volumes of entry level model Maruti 800 and mid-size sedan models further affected overall growth.

During the month, sales growth in the premium hatchback segment was 15.1 per cent. Sales of models like Alto, Wagon R, Zen and Swift increased to 29,326 units for the month as compared to 25,477 during July 2005. After recording very high growth rates since the launch of premium hatchback Swift, volume growth in this segment has slowed down during the last 2 months.

Sales of entry level model Maruti – 800 last were at 6,040 units during the month, a decline of 4 per cent as compared to 6,294 units for July 2005. Sales for July were considerably lower than the number for June 2006, which stood at 7,796 units.

Volume growth in the passenger van segment was 14.2 per cent with sales of the company's models Omni and Versa increasing to 6,899 units as compared to 6,043 units for July 2005.

Mid-sized sedans like the Esteem and Baleno reported a disappointing 15.5 per cent decline in volume sales to 2,146 units as compared to 2,534 units for July 2005. The company's aged model lineup and launch of new models by competitors are clearly affecting sales in this segment.

The sales figures for July 2006: