Tata Motors passenger car sales stood at 10,900 units for the month of May 2019. This when compared to sales registered in May 2018, which stood at 17,489 units, is a massive decline of 38%.
Sales of popular cars like Tiago and Nexon, which usually registered average sales of 7,000 units and 5,000 units a month respectively, have too declined; which has largely contributed to the overall decline in company’s passenger car sales decline.
In the past few weeks, Tata Motors has updated their product line-up with the launch of new variants of Tiago, deleting some variants of Bolt, Zest, Safari. These changes are being made so as to get their line-up updated to meet upcoming safety and crash test norms. Tata Motors will also launch new cars this year. Altroz hatchback will start arriving at dealerships this month, while Harrier 7 seater is expected by Diwali 2019.
All car makers who have released sales report for May 2019 till now, have registered a massive decline, except for Mahindra (whose sales have declined by just 1%). Maruti reported sales decline of 24%, Honda sales declined by 27% while Toyota sales declined 12%. Sales of Ford and Hyundai have not been revealed at the time of publishing this article.
Mr. 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% 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.”
In the commercial vehicle segment as well, Tata Motors has registered a decline to the tune of 20% in May 2019. From selling 36,806 units in May 2018, Tata sold 29,329 units in May 2019. Tata Motors said, “The market sentiments remain weak due to depressed freight rates and underutilization of truck(s). Slowing economy and stagnant industrial output have also dragged down CV sales in recent months. ”
In the CV segment, it is the M&HCV sales which has registered the highest drop. Sales declined from 12,424 units to 7,683 units. I&LCV truck sales in May 2019 declined by 2% to 4,043 units. The SCV Cargo and Pickup segment in May 2019, witnessed a drop in sales at 12,695 units, lower by 18%.
The commercial passenger carrier segment sales in the domestic market in May 2019 at 4,908 units, were higher by 4% 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.
Mr. Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said, “Tata Motors Commercial Vehicles (CV) Business sales in the domestic market in May registered a drop of 20% . The M&HCV sales has taken the maximum hit in the domestic market, declining by 38%, 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% 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% 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.”