Tata Motors has reported three consecutive months of sales decline for the current fiscal. Cumulative sales for the domestic market (April – June 2019) is reported at 20 sales decline. For Q1 FY19-20, Tata Motors’ sales have slumped to 131,879 units, down from 164,579 units sold in Q1 FY18-19.
Tata passenger vehicles domestic sales for June 2019 are reported at a decline of 27 percent. Sales is down at 13,351 units from 18,213 units sold in June 2018. Buyer sentiment remains low in the backdrop of a liquidity crunch.
Cumulative sales in the domestic market for the fiscal (April – June 2019) is reported at 36,945 units. This equates to 30 percent sales decline, down from 52,937 units sold in Q! FY2018-19. Tata Motors exports (CV and PV) in June 2019 at 2,702 units is down 48 percent from June 2018. This is attributed to a drop in retail sales in Bangladesh, Nepal & Middle East markets.
With the Indian auto industry facing de-growth these last 4 quarters, Q1 has been no different. Low customer sentiment is in tandem with overall economic growth slowdown. Customer expectation of GST rate revision for cars and limited liquidity has resulted in postponement of car buying decisions. Tata Motors ‘expects to see a growth in demand in the coming few months, and are well equipped to deliver the best to all’.
Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said, “Tata Motors’ Commercial Vehicles (CV) domestic sales in June 2019 at 35,722 units registered a drop of 7% compared to 38,560 units sold last June.” Tata Motors M&HCV and SCV segment sales have fallen owing to poor consumer sentiment, falling freight rates, and difficulty of funding from NBFCs. Sales for both segments have declined at 19 percent, and 10 percent, respectively.
M&HCV segment sales weakened owing to slowdown in infrastructure projects. I&LCV truck segment sales growth stands at 3 percent. 4,564 units are reported sold on the back of growth in e-commerce and intra city logistics. Commercial passenger carrier segment growth stood at 17 percent for June 2019. This is attributed to school buying season. A further boost has come from orders received for ambulances and electric buses. This year’s monsoon will play a role in reviving specific segments through the new quarter (Q2).
Mr. Sibendra Barman – Vice President, Sales Marketing and Customer Support, Passenger Vehicle Business Unit (PVBU), Tata Motors Ltd. said, “Auto Industry has been de-growing for the past 4 quarters. Customer sentiments remained low due to the overall slowdown in economic growth. Consumer expectations on revised GST rate on cars and limited liquidity availability kept them from firming their buying decision this month. We expect to see a growth in demand in the coming few months and are well equipped to deliver the best to all.”