Mumbai: Tata Motors sales in the domestic market in August 2018, grew by 27 per cent, at 58,262 units compared to 45,906 units over the previous year. On a cumulative basis (April-August 2018), Tata Motors registered a strong growth of 45 per cent at 274,666 units compared to 188,822 units against the same period last year driving on the month-on-month sales performance of its Commercial and Passenger Vehicles Businesses in the domestic market.
As part of Turnaround 2.0 in FY19, Tata Motors continues to focus on 3 clear objectives – ‘Win Decisively in CV’, ‘Win sustainably in PV’ and embed the turnaround culture within the organization while maintaining cautious optimism in the market.
Growth in Commercial Vehicles Domestic Sales
Tata Motors’ Commercial Vehicles (CV) domestic sales in August 2018 were 39,859 units as against 31,566 units in Aug 2017, a growth of 26 per cent led by the continued acceptance of the superior performance of our BS4 products.
Cumulative sales for the fiscal (April-Aug 18) is at 186,318 units compared to 124,691 units, growth of 49 per cent over the same period last year. The CV industry continues to grow on the back of strong economic activity, in the backdrop of strong GDP growth of 8.2 per cent in the April-June 2018 quarter, and growth in manufacturing, agriculture, construction and private final consumption expenditure (PFCE).
The M&HCV truck segment with sales of 12,715 units continued to witness a growth of 16% over last year. This growth was on the back of road construction, affordable housing, irrigation projects and the government spending on infrastructure projects.
The M&HCV segment has started to gain back its momentum in the market after the clarity on the increased axle load norms. In addition, Tata Motors BS4 range of Signa and Prima trucks and tippers have been well established for their superior performance and continue to gain acceptance amongst the customers.
The I&LCV truck segment reported a strong performance with 5,260 units, a growth of 36 per cent over last year. This growth was strengthened by the new Tata Ultra range of trucks, in addition to the e-commerce sector and increased rural consumption.
The SCV Cargo and Pickup segment reported a robust growth with 17,426 units, up by 37 per cent, over last year. The volumes for this segment were aided by high private consumption-led growth and the continuously evolving hub and spoke model – all leading to the small vehicle demand for the last mile connectivity. The newly launched Tata Ace Gold has also been gaining significant acceptance and contributing to the volume growth.
The commercial passenger carrier segment recorded a steady growth with 4,458 units, a 9 per cent increase over last year. This was led by the demand for school buses and vans supported by the demand for Ambulances, in addition to the uptick in the STU buying.
Elated by the growth Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said, “In August 2018, our commercial vehicle business has witnessed strong sales momentum registering a growth of 26 per cent led by the success of our existing products and ongoing customer initiatives across segments. Improvements in GDP growth and other industry indicators continue to support the year on year growth of the auto industry.”
He further added, “The company has recorded significant performance across segments due to various economic factors along with focused initiatives as part of our turnaround strategy. The M&HCV grew by 16 per cent, 36 per cent increase in the ILCV truck segment, 37 per cent growth in SCV Cargo & Pickup, while CV Passenger grew by 9 per cent over last year.”
Improved Performance in Passenger Vehicles Domestic Sales
Tata Motors’ Passenger Vehicles (PV) domestic sales in August 2018 continued its growth trend at 18,420 units compared to 14,340 units, higher by 28 per cent over last year despite a challenging month for the industry impacted on the account of heavy monsoon.
The continuous strong demand for our new generation vehicles has led to consistent month on month growth. The newly launched Nexon AMT has received an overwhelming response and is witnessing good traction in the market.
The Passenger Car segment registered a growth of 9 per cent, while the UV segment grew by 93 per cent clearly stating the preferences of today’s customers. Cumulative sales of PV in the domestic market for the fiscal (April-August 2018) grew by 38 per cent, at 88,436 units compared to 64,131 units for the same period, last fiscal.
Commenting on the performance, Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd. Said, “Due to heavy rains across the country and floods in Kerala, the consumer sentiment was muted. Despite a challenging month, we have recorded a growth of 28 per cent Y-o-Y. The demand for our new generation vehicles has helped us maintain this consistent month on month growth.”
He further added, “We are happy to report that the UV segment has performed exceptionally well, with a growth of 93 per cent. This month also marked the milestone of the 50,000th Nexon rolling out of the Ranjangaon plant. The Nexon is one of the most loved and appreciated compact SUVs in the market today. We will continue to strive towards driving volumes and increasing our market share as part of our on-going turnaround journey.”