Mumbai, August, 2019:
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) decline by 23% at 164,817 units as compared to 214,679 units sold over the same period last year.
Domestic – Commercial Vehicles
Tata Motors’ Commercial Vehicles (CV) domestic sales in July 2019 at 22,453 units registered a drop of 36% compared to 34,817 units sold last July. Retail sale is estimated to be higher than wholesale by 38%, thereby reducing the dealer stock considerably. Company focused on system stock reduction, in light of significant contraction in demand, and impending transition to BSVI towards the end of the year, necessitating consumption of entire BSIV stock by year-end. We will continue to focus on reducing the system stock, including dealer stock in interest of their profitability and working capital reduction.
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.
- The M&HCV truck segment July 19 sales at 5,465 units has declined by 46% over July 18.
- I&LCV truck segment sales in July at 3,167 units dropped by 21% over last July.
- The SCV and pickup segment registered sales at 10,937 units in July 2019, a drop of 30% over last July.
- The commercial passenger carrier segment July’19 sales at 2,884 units registered a drop of 42% over July 2018. Leaving aside the small commercial passenger segment, sales was at 2700 units in July 2019 a marginal growth of 2.7% over July 2018.
Amidst challenging current environment our overall progress for BSVI transition is on track, in terms of product readiness and certification, as well as field preparedness
Domestic – Passenger Vehicles
In the first Quarter, the company launched its strategy under the new paradigm, with the focus on retail sales and help in reducing dealer stocks. In July 2019 despite the challenging market condition, the Passenger Vehicles retail sales was marginally better than whole sales, resulting in a slight reduction in the dealer stock.
We worked on increasing our retail sales by increasing our footprints. In April-July 2019, we added 48 new sales points across country, which includes 30, added in July 2019. Dealer network has added over 2600 sales executives in our quest to increase sales. The off take declined by 31%, at 10,485 units, as compared to units sold in July 2018 which is in line with the decline on the industry (31%), and as a result market share remained same as last year. 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.