Tata Motors has posted a staggering sales growth of 154% in Aug 2020 – This is the highest sales growth registered by any car maker for the month
With a large number of manufacturers on a path of sales recovery for August 2020, overall passenger vehicle sales is up for the month. Tata Motors has already announced the alignment of its PV business. In March 2020, Tata Motors merged its PV and EV verticals.
The alignment includes transferring relevant assets, IPs and employees to strengthen the PV business as a standalone unit subject to regulatory and statutory approvals as applicable, to be completed in a year from filing. This is done with the aim of securing mutually beneficial strategic alliances, which open doors of access to products, architectures, powertrains, new-age technologies and capital.
Tata Motors current product line-up sees the manufacturer present in select segments, and the ask is going to get even tougher. Having put a strong foot forward with its new age cars, competition is always around the corner. Following Tata Harrier launch in January 2019, the launch of MG Hector in July 2019, directly impacted Harrier sales.
With Kia Sonet bookings showing heart, its launch will see Tata Nexon compete with yet another segment entrant. In fact, the entry level compact-SUV segment is going to see a number of entrants soon. With this segment already being a highly competitive one, Maruti Suzuki and Hyundai have for long enjoyed segment dominance.
Tata Tigor sits in a segment where sales has never been particularly high for any manufacturer. Current sales trends reflect demand for small cars. For Tata Motors, Tiago is already a bestseller, and is likely to have gained even more in August 2020. The automakers newest launch, Tata Altroz hatch has quickly become the company’s third-best seller.
Present sales trends are surging forward on the back of multiple factors. They include purchases that were deferred until now, a wider range of loan/financing options, dispatch of orders that were booked but undelivered due to lockdown, a good monsoon that’s helped with disposable income, Purchases from outside of metros and big cities, interest in personal mobility small cars, and the ongoing festive season, which has traditionally been a period of heightened sales activity.
While an alliance/strategic partner is being sought, Tata Motors has been able to post two straight months of notable sales growth, July, and August 2020. Tata Motors PV sales for August 2020 is reported at 18,580 units, exceeding July 2020 sales of 15,012 units. The last time Tata posted higher sales than that in Aug 2020, was almost 2.5 years ago, in March 2018 – when sales were at 20,006 units.
Sales in August 2019 was reported at 7,316 units. YoY sales growth stands at 154 percent, and MoM sales growth is pegged at 24 percent. Sales improvement also means, Tata motors market share has improved, and surpassed that of Mahindra, its closest competitor in terms of sales.