Tata motors sales report depicts 26% decline in sales of passenger vehicles from last year and 18% drop for commercial vehicles.
The first quarter of the year has been rather difficult for most auto manufacturers with them witnessing consistent drop in sales. Tata motors sales report for the month of April, 2019 depicts a decline of 20% in their sales volume.
The company sold 42,577 units of vehicles in April 2019, as opposed to 53,511 units that were sold in April 2018. This is the second highest drop in sales by any manufacturer for the month of April after Toyota which recorded a significant 23% drop in sales from last year.
Not only Tata and Toyota, but several other manufacturers like Maruti Suzuki and even Hyundai reported drop in sales for April 2019. The reasons for drop in sales are because of weak consumer sentiments. Higher prices of vehicles due to enforcement of stricter safety regulations, higher commodity prices and policy reforms like one time payment of insurance premium are seriously affecting sales. Tata motors also sited the general elections to be a reason for low sales.
Tata motors sales report depicts 26% decline in sales of passenger vehicles from last year. The company sold 12,694 units last month as opposed to 17,235 units sold for the corresponding month, last year. This is in spite of the launch of the new Harrier. Meanwhile, commercial vehicles (CV) too recorded a drop by 18 per cent, from 37,276 units in April 2018, to 29,883 units in April 2019.
The medium and heavy commercial vehicles (MHCV) recorded sales of 9403 units last month, a 33% drop when compared to 14,028 units sold in April 2018, becuase revised axle norms. The Tipper segment has however shown a growth with Tata selling 3428 units in April 2019, up by 1% from last year.
The I&LCV truck sales has however seen a growth of 10% with 3546 units sold as compared to 3,229 units sold in April 2018. The SCV Cargo and Pickup segment, on the other hand too witnessed a drop in sales from 14,620 units recorded last year to 13,996 units sold this year, down by 4 per cent.
The commercial passenger vehicle segment witnessed a drop in sales by 33% with
2983 units of vehicles sold in April this year. Exports too has seen a sharp decline of 53% with only 14012 units sold. The company sited several reason like high stocks in Bangladesh resulting from contraction in retail because of elections, security concerns in Sri Lanka and slump in Middle East for the drop in export sales.