In June 2018, CV continues its growth momentum with 50% increase in volumes and PV registers an impressive growth of 63% in sales. Tata Motors registered a strong growth of 64% in its domestic sales for the first quarter (April-June 2018), FY19 at 164,579 units compared to 100,141 units over previous year due to the continued strong month on month sales performance of its Commercial and Passenger Vehicles Business in the domestic market. In June 2018, Tata Motors sales in the domestic market grew by 54% at 56,773 units compared to 36,836 units over previous year.
In FY19, the Company has embarked on a Turnaround 2.0 journey, with 3 clear objectives viz. ‘Win Decisively in CV’, ‘Win Sustainably in PV’ and embed the turnaround culture within the organisation.
Domestic – Commercial Vehicles
Tata Motors’ Commercial Vehicles (CV) domestic sales continued its strong growth momentum in June 2018 with 38,560 units, an increase of 50% compared to 25,660 units last year. Cumulative sales growth of CV in the domestic market for the quarter (April-June 2018) were at 111,642 units, a growth of 71%, compared to 65,283 units, in the same period last fiscal. Post the Supreme Court ruling on BSIII to BSIV transition, sales were affected last year as there was huge pre-buy and also a limited supply of BSIV vehicles. This year, the continued growth in June 2018 is on the back of the economy continuing to show an uptick due to the improved industrial activity, robust demand in private consumption and government spending on infrastructure.
The M&HCV truck segment registered another strong performance with 11,524 units, a growth of 50% over June 2017. Demand for the MHCV trucks continued to be boosted by the government’s focus on infrastructure development, road construction, building of irrigation facilities and affordable housing projects across the country. The SCR technology that was introduced in the M&HCV trucks last year has gained customer confidence and continues to establish its TCO superiority. Various sectors like auto carriers, 3PL players, cement, e-commerce, steel and oil tankers are also driving growth. Additionally, one year of GST has led to a significant amount of rationalization of the warehouses with the focus on the hub and spoke model of distribution leading to faster turnaround time and giving a boost to the demand.
The I&LCV truck segment reported a significant performance with 4,485 units, a growth of 69%, over June 2017. This growth has been led by the e-commerce, increased rural consumption and supported by the launch of new products from Tata Motors. The recently launched range of Tata Ultra ILCV trucks is gaining significant acceptance and contributing to the volume growth.
The SCV Cargo and Pickup segment sales at 16,857 units grew by 53% over June 2017. The growth in the e-commerce sector, the continuously evolving hub and spoke model and the increased rural consumption have all led to the small vehicles demand for the last mile connectivity. The newly launched Tata Ace Gold has been well received by the customers leading to a strong surge in its sales.
The commercial passenger carrier segment posted a growth of 33% with sales at 5,732 units in June 2018. This was led by the significant demand for school buses and vans supported by demand for ambulances. The STU buying is also showing an uptick in demand.
Recording a strong CV sales performance, Mr. Girish Wagh, President, Commercial Vehicle Business Unit, Tata Motors said “We are pleased to end the first quarter of FY19 with a robust growth in our sales performance, crossing the 1 lakh sales mark with 71% growth. In June 2018, our commercial vehicles domestic business reported an increase of 50% on the back of the economy continuing to show an uptick due to the improved industrial activity, robust private consumption and government spending on infrastructure.
The M&HCV segment performed strongly, recording a 50% growth boosted by the government’s focus on infrastructure development, road construction, building of irrigation facilities and affordable housing projects across the country. New product launches, continuing growth of the e-Commerce sector and increased rural consumption have resulted in robust growth of 69% in the ILCV segment. The SCV Cargo and Pickup segment reported a significant growth of 53% on the account of growth in e-Commerce sector and increasing demand for last mile connectivity. The CV Passenger carrier segment grew by 33% led by the robust demand for school buses and Ambulances. The recently launched new products like the Tata Ultra ILCV range of trucks and Tata Ace Gold are gaining significant acceptance and contributing to the volume growth.’’
Domestic – Passenger Vehicles
Tata Motors’ Passenger Vehicles (PV) domestic sales in June 2018 has registered an impressive performance with 18,213 units, a growth of 63%, over last year. This is driven by continuous strong demand for Tiago,Tigor, Hexa and Nexon. June 2018 also saw the combined production of Tiago and Tigor cross the important milestone of 200,000 units. The recently launched Nexon AMT has received an overwhelming response and is witnessing good traction in the market. Cumulative sales of PV in the domestic market for the fiscal (April-June 2018) is at 52,937 units, a growth of 52% compared to 34,858 units for the same period, last fiscal.
Ending the first quarter of FY19 with a robust sales performance, Mr. Mayank Pareek, President – Passenger Vehicles, Tata Motors, said, “We are delighted with the robust sales performance in June 2018 with a growth of 63%. Thanks to the continued strong demand for Tiago, Tigor, Nexon and Hexa. To meet the growing demand, we also saw the combined production of Tiago and Tigor cross the important milestone of 200,000 units in June 2018 at the Sanand facility. We will continue to strive towards a sustainable win by driving volumes and increasing our market share as part of our on-going turnaround journey.”
The company’s sales from exports (from CV and PV) in June 2018 was at an impressive 5,246 units compared to 3,504 units last year, a growth of 50%.