Tata Motors’ Commercial and Passenger Vehicles Business sales in the domestic market witnessed a drop of 34% at 32,938 units compared to 50,100 units sold over last year as subdued demand continued in July 2019. The cumulative sales for the domestic market (April 2019 – July 2019) declined by 23% at 164,817 units as compared to 214,679 units sold over the same period last year.
The CV domestic sales in July 2019 at 22,453 units registered a drop of 36% compared to 34,817 units sold last July. The M&HCV truck segment July ’19 sales at 5,465 units has declined by 46% over July 18, while the commercial passenger carrier segment July ’19 sales at 2,884 units registered a drop of 42% over July 2018.
The market continues to exhibit subdued demand sentiment as customers are postponing purchases given the poor freight availability, the falling freight rates impacting their viability. The slowing economy, excess capacity created on account of increased axle load norm, slowdown in execution of infrastructure projects over past few quarters, drop in discretionary consumption, and poor liquidity conditions in tight financing environment have led to severe contraction in total industry volumes across segments.
As for PV segment, the company said that in July 2019, despite the challenging market condition, the Passenger Vehicles retail sales were marginally better than wholesales, resulting in a slight reduction in the dealer stock. In April-July 2019, 48 new sales points were added across the country, which includes 30 added in July 2019. The dealer network has added over 2,600 sales executives in a quest to increase sales.
However, there’s a decline of 31% at 10,485 units, as compared to units sold in July 2018. The cumulative sales in the domestic market for the fiscal (April 2019 -July 2019) were at 47,430 units, a drop of 32%, compared to units sold in the same period last year.
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