Tata Motors commercial vehicle and passenger vehicles segment both are affected this fiscal year.
Tata Motors reported a 26% drop in overall sales for the month of May, 2019. The Indian car manufacturer reported sales limited to just 40,155 units as opposed to 54,290 units last May for passenger and commercial vehicle.
This year was the lowest in terms of sale for all car manufacturers as the weak market continued to constraint the sales of automobiles. The cumulative sale for the domestic market for the month of April-May 2019 was at 82,684 units compared to 107,758 units over last year leading to a de-growth of about 23%.
The domestic passenger vehicles saw a drop of 38% with domestic wholesale being limited to 10,900 units as opposed by 17,489 units last May, 2018. The challenging UV (utility vehicle) market saw a growth of 13% while the cumulative sales growth for passenger vehicles for April-May 2019 stood at 23,594 units recording 38% of de-growth as compared to 34,724 units for the same period, last financial year.
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.”
The domestic commercial vehicles did no good as it dropped the sales by 20% with the numbers being limited to 29,329 units for month of May compared to 36,806 units for the last year, same period. The cumulative sales have also been dropped for this fiscal year (April-May, 2019) being limited to 59,212 units as compared to 73,082 units for the last year, same period.
A slowing economy, weak market sentiments and stagnant industrial output are the main factors involved in the de-growth of commercial vehicles segment.
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 were 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.”
Tata Motors is set to launch its premium hatchback Tata Altoz which will be launched somewhere around July, 2019. Also, Tata Buzzard (7-seater SUV) will be launched later this year to target its competitors.