MUMBAI, INDIA: Tata Motors Commercial and Passenger Vehicles Business sales in the domestic market in May 2019 at 40,155 units witnessed a drop of 26%, as against 54,290 units sold in May 2018, as market sentiments continued to be muted.[the_ad id=”31605″]The cumulative sales for the domestic market (April-May 2019) was at 82,684 units compared to 107,758 units over last year, a de-growth of 23%.
Domestic -Commercial Vehicles:
Tata Motors Commercial Vehicles (CV) Business sales in the domestic market in May 2019, at 29,329 units registered a drop of 20% compared to 36,806 units sold last May. 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. Cumulative Commercial Vehicles (CV) sales volume in the domestic market for the fiscal (April-May 2019) was at 59,212 units, a decline of 19%, compared to 73,082 units, in the same period last fiscal.
The M&HCV sales in the domestic market in May 2019 declined by 38%, at 7,683 units, compared to 12,424 units sold in May 2018. The demand for MHCV trucks continues to be weak on the back of excess freight carrying capacity of MHCV parc which got increased by 20% after the revised axle load norms without the commensurate increase in freight availability.
Tipper sales have also dropped by 22% at 2,539 units in May 2019, compared to 3,261 units, sold in May 2018, which is resultant of a drop in tipper utilization rates among fleet owners in recent months.
The I&LCV truck sales in May 2019 declined by 2% at 4,043 units as compared to 4,106 units sold in May 2018. This segment has been relatively less affected by the revised axle load norms. E-commerce and discretionary consumption have been the two main drivers of I&LCV volume.
The new products introduced in the fast growing 15-16 Tonne segment and CNG products have been well accepted by the customers and now contribute to over 10% of volumes. The SCV Cargo and Pickup segment in May 2019, witnessed a drop in sales at 12,695 units, lower by 18%, as compared to 15,558 unit sold in May 2018, essentially due to slowing consumption, including in rural areas.
A normal monsoon should be able to reverse this situation, especially in rural areas. The evolving hub-spoke model, demand for the last mile connectivity across the rural and urban markets, and Swachch Bharat initiatives continue to support sales volume in this segment. 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.
Domestic -Passenger Vehicles:
Due to continued low market sentiments, while the Tata Motors Passenger Vehicles (PV) domestic wholesales in May 2019 at 10,900 units, witnessed a drop of 38%, as compared with 17,489 units sold in May 2018, in view of higher vehicle stocks in network the PV Business strategy was to focus on retails.
In May 2019, retail sales have recorded a growth of 11% over May’18, on the back of exciting product line-up and micro segmenting strategy. Despite a challenging market, the UV segment sales recorded a growth of 13%. Cumulative sales growth of PV in the domestic market for the fiscal (April-May 2019) were at 23,594 units, a decline of 32%, compared to 34,724 units, in the same period, last fiscal.
The company’s sales from exports (CV and PV) in May 2019 was at 1,563 units, lower by 58% over last May. Several factors like drop in retails in Bangladesh and Nepal, high stocks in SAARC region and slump in Middle East have affected the overall industry volumes in these markets.