Tata Motors report: Auto major sells 49,155 units in May 2019
Tata Motors' domestic commercial and passenger vehicles sales in in May 2019 witnessed a drop of 26 percent, at 40,155 units, against 54,290 units sold in May 2018, as the market sentiments continued to be muted.
Tata Motors' domestic commercial and passenger vehicles sales in in May 2019 witnessed a drop of 26 percent, at 40,155 units, against 54,290 units sold in May 2018, as the market sentiments continued to be muted. 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 percent.
Tata Motors' commercial vehicles (CV) sales in domestic market in May 2019 was at 29,329 units, a drop of 20 percent compared to 36,806 units sold in last May. The market sentiments remain weak due to depressed freight rates and underutilisation of truck(s). Slowing economy and stagnant industrial output have also dragged down CV sales in recent months.
Cumulative CV sales volume in the domestic market for the financial year (April-May 2019) was at 59,212 units, a decline of 19 percent compared to 73,082 units in the same period last financial year. The M&HCV sales in the domestic market in May 2019 declined by 38 percent, at 7,683 units, compared to 12,424 units sold in May 2018.
The demand for MHCV trucks continues to be weak on the back of excess freight carrying capacity of MHCV parc which got increased by 20 percent after the revised axle load norms without the commensurate increase in freight availability. Tipper sales have also dropped by 22 percent at 2,539 units in May 2019 compared to 3,261 units, sold in May 2018, which is resultant of a drop in tipper utilisation rates among fleet owners in recent months.
Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors, said, “Tata Motors Commercial Vehicles (CV) Business sales in the domestic market in May registered a drop of 20 percent. The M&HCV sales has taken the maximum hit in the domestic market, declining by 38 percent, 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 percent 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 percent 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.”
The I&LCV truck sales in May 2019 declined by 2 percent at 4,043 units as compared to 4,106 units sold in May 2018. This segment has been relatively less affected by the revised axle load norms. E-commerce and discretionary consumption have been the two main drivers of I&LCV volume. The new products introduced in the fast-growing 15-16 tonne segment and CNG products have been well accepted by the customers and now contribute to over 10 percent of volumes.
The SCV Cargo and Pickup segment in May 2019 witnessed a drop in sales at 12,695 units, an 18 percent drop compared to 15,558 unit sold in May 2018, due to slowing consumption, including in rural areas. A normal monsoon should be able to reverse this situation, especially in rural areas. The evolving hub-spoke model, demand for the last mile connectivity across the rural and urban markets, and Swachch Bharat initiatives continue to support sales volume in this segment.
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 percent 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 commercial passenger carrier segment sales in the domestic market in May 2019 at 4,908 units, were higher by 4 percent over last May. The company is gearing up for the supply as per the new regulations, AIS 153. 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.