Despite of new car launches and a brand new marketing campaign, sales of Tata Motors continue to decline in India
Late in January 2020, Tata Motors pulled out an ace, and showcased its BSVI preparedness in full force. New Tata Altroz was launched alongside 2020 BS6 Tiago, Tigor, and Nexon. Earlier that month, Tata Motors also announced its new Altroz global NCAP safety rating. At the Auto Expo, Tata launched the BS6 Harrier, with more power, new features and an automatic transmission.
With its new, and renewed lineup, Tata Motors stepped into February 2020 with its strong foot forward. However, all of this isn’t proving to be adequate just as yet. Passenger vehicle sales fell a whopping 31 percent down to 12,430 units, down from 18,110 units.
The month’s decline is a tad bit better than YTD sales decline. For the 11 months gone by in the current FY, sales is reported at 1,25,521 units. This equates to 35 percent sales decline, down from 1,92,333 units sold in the same 11 months in the previous fiscal. With just a month left in the financial calendar, there’s nothing to be done to reverse the yearlong slowdown.
| Category | Feb ’20 | Feb ’19 | % change | FY20 | FY19 | % Change |
|---|---|---|---|---|---|---|
| Total Domestic Sales | 38,002 | 57,221 | -34% | 4,31,040 | 6,10,108 | -29% |
| Category | Feb ’20 | Feb ’19 | % change | FY20 | FY19 | % Change |
| M&HCV | 6,739 | 12,437 | -46% | 73,884 | 1,35,778 | -46% |
| I & LCV | 3,356 | 5,017 | -33% | 40,916 | 50,266 | -19% |
| SCV & Pick up | 12,135 | 17,417 | -30% | 1,54,658 | 1,84,763 | -16% |
| Passenger Carriers | 3,342 | 4,240 | -21% | 36,061 | 46,968 | -23% |
| Total Domestic | 25,572 | 39,111 | -35% | 3,05,519 | 4,17,775 | -27% |
| CV Exports | 2,514 | 2,771 | -9% | 28,058 | 45,466 | -38% |
| Total CV | 28,086 | 41,882 | -33% | 3,33,577 | 4,63,241 | -28% |
| Category | Feb ’20 | Feb ’19 | % change | FY20 | FY19 | % Change |
| Total PV | 12,430 | 18,110 | -31% | 1,25,521 | 1,92,333 | -35% |
Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd. said. “Our new Altroz received an overwhelming response.” Tata is yet to reveal Altroz booking numbers till date. Once a more detailed sales report for the month is available, it’ll be easy to see Altroz’ contribution to Tata Motors’ PV sales last month.
The company says it has built a strong order book since its multiple launches in January end. Outbreak of COVID-19 (corona virus) in China and a recent fire incident at a strategic vendor has impacted vehicle production and wholesale volume. Processes are in place to reduce impact. and provide transparency in regard to vehicle delivery.
BSVI emission norms are mandated from April 1, 2020. As such, processes are in place to ensure dealers are not left dealing with unsaleable stock at deadline. Tata Motors says its BSIV vehicle stock is well below target level. The company finds itself positioned well for smooth BSIV-BSVI transition. Customer interest in its product portfolio is strong. The manufacturer looks forward to market competitiveness and volume growth in the months to come.
Domestic CV sales fell 35 percent. Down to 25,572 units from 39,111 units. YTD sales decline fell 27 percent, down to 3,05,519 units from 4,17,775 units. CV exports fell by 9 percent, down to 2,514 units from 2,771 units. Exports for YTD are down 38 percent, down at 28,058 units from 45,466 units. Total domestic sales (PV plus CV) fell 34 percent in February 2020, down at 38,002 units from 57,221 units. YTD sales decline is reported at 29 percent, down to 4,31,040 units from 6,10,108 units.
