The slowdown in the Indian Auto industry continues as manufacturers continue to report falling sales. Tata Motors have reported a decline in commercial and passenger vehicles sales of 34% in the domestic market in their July sales report. Tata Motors sold 32,938 units of vehicles as compared to 50,100 units of vehicles that were sold in the same period, last year.
Cumulative sales for Tata Motors in the domestic market from April, 2019 to July, 2019 stood at 164,817 units, a massive 23% drop from 214,679 units that were sold in the same period, last year. In order to reduce dealer stocks, Tata Motors shifted strategy to focus on retail sales in the first quarter of the year. And in spite of the present condition of the market, passenger vehicles retail sales were marginally better than wholesales, thus resulting in reduction of dealer stock.
Still, Tata Motors recorded a decline of 31% in the passenger vehicle segment for July, selling 10,485 units of vehicles. The cumulative sales for passenger vehicles in the domestic market for the fiscal (April 2019 -July 2019) stood at 47,430 units, recording a massive drop of 32% from what was sold last year in the same time period.
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The commercial vehicle segment fared no better. It recorded a drop in domestic sales by 36%. As for the sales from exports (including both passenger and commercial vehicles), it stood at 3,374 units for July 2019, 32% lower from exports in July 2018. The focus has been to correct the stocks in SAARC, Middle East and key markets in Africa.
The Indian automotive market has been low since the beginning of this current financial year itself. Customer sentiments have been poor due to increased prices and low credit availability, liquidity crunch and one time payment of insurance premium. However, carmakers have also had to check their inventories due to the incoming of the BS-VI norms because of which the wholesale numbers are low. However, Tata Motors is on track for the BS-VI norms in terms of product readiness, certification and field preparedness as well.