The slowdown in the automotive sector is adveserly affecting the sales figures of most industry players. Tata Motors Commercial and Passenger Vehicles Business witnessed a drop of 26% in the month of May 2019. The company sold 40,155 units as against 54,290 units in May 2018. The cumulative sales for the domestic market (April-May 2019) was at 82,684 units compared to 107,758 units over last year, a de-growth of 23%.
Mr. Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said, “Tata Motors Commercial Vehicles (CV) Business sales in the domestic market in May registered a drop of 20% . The M&HCV sales has taken the maximum hit in the domestic market, declining by 38%, at 7,683 units, essentially due to higher capacity post increased axle load, not yet matched by commensurate freight growth. I&LCV truck sales were least affected, with a decline of 2% at 4,043 units as discretionary consumption has been witnessing a slowdown in recent months. The SCV Cargo and Pickup segment also lower by 18% as distress in the agriculture sector brought down rural consumption. The commercial passenger carrier segment sales was higher by 4% over last May. The school season has pushed up demand and is expected to be positive in the next month too. We are expecting an improvement in the economic conditions in the coming months and look forward to an improved buying sentiment.”
Domestic – Commercial Vehicles
Tata Motors Commercial Vehicles (CV) Business sales in the domestic market in May 2019, at 29,329 units registered a drop of 20% compared to 36,806 units sold last May.
The M&HCV sales in the domestic market in May 2019 declined by 38%, at 7,683 units, compared to 12,424 units sold in May 2018.
The I&LCV truck sales in May 2019 declined by 2% at 4,043 units as compared to 4,106 units sold in May 2018.
The SCV Cargo and Pickup segment in May 2019, witnessed a drop in sales at 12,695 units, lower by 18%, as compared to 15,558 unit sold in May 2018, essentially due to slowing consumption, including in rural areas.
The commercial passenger carrier segment sales in the domestic market in May 2019 at 4,908 units, were higher by 4% over last May. The order book for Winger ambulances is strong at over 2,000 units and the new product introduction of 15-seater Winger has witnessed good traction.
Mr. Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd. said, “In view of higher vehicle stocks in network our strategy was to focus on retails. While the market sentiments continued to be muted, our exciting products and micro segmenting strategy helped in improving retails. In May 2019, our retail sales have shown a growth of 11% over May’18. Despite this challenging environment, our UV segment continues to grow at 13% on the back of a strong UV portfolio. We expect that post- election industry will start improving gradually. In the months to come, we are positive to bounce back with our robust product lineup and strive towards driving volumes and increasing our market share as part of our on-going turnaround journey.”
Domestic – Passenger Vehicles
Due to continued low market sentiments, Tata Motors Passenger Vehicles (PV) domestic wholesales witnessed a drop of 38%, as compared with May 2018.
In May 2019, retail sales have recorded a growth of 11% over May’18, on the back of exciting product line-up and micro segmenting strategy. Despite a challenging market, the UV segment sales recorded a growth of 13%. Cumulative sales growth of PV in the domestic market for the fiscal (April-May 2019) were at 23,594 units, a decline of 32%, compared to 34,724 units, in the same period, last fiscal.