Tata Motors registers healthy growth in domestic CV sales

Tata Motors passenger and commercial vehicles total sales (including exports) in August 2017 were at 48,988 vehicles, higher by 14% over 43,105 vehicles sold in August 2016.

The company’s domestic sales of commercial and passenger vehicles for August 2017 were at 45,906 units, 26% more than the 36,510 units sold in August 2016, driven by growing demand across segments and increased positive customer sentiments.

Mr. Girish Wagh, Head – CVBU, Tata Motors

Commenting on the sales performance, Mr. Girish Wagh, Head – Commercial Vehicle Business Unit, Tata Motors, said: “In August, 2017, our commercial vehicles grew by 34% over last year. The increased imposition of restrictions on overloading, growing momentum in the infrastructure, mining and construction segments and continued increasing acceptance of the SCR technology has further boosted the demand in the M&HCV segment resulting in a robust 52% growth. TML performed strongly in the pickup and SCV segments on the back of the establishment and ramp up of new products such as the Yodha and XL ranges, growing 55% and 25% respectively. In the ILCV segmen,t a strong festive season demand and new product interventions helped deliver a 44% growth in volumes. In line with our turnaround strategy, we will be introducing new products and will continue to undertake appropriate measures to improve our performance across segments”.

Tata Motors’ overall CV sales in August 2017 in the domestic market stood at 31,566 units, up by 34% over August 2016. The sales grew on the back of growing demand across segments supported by the continued ramp-up in production of BS-IV vehicles since April this year. The company also passed on the benefits of GST to consumers by reducing the prices of its vehicles across all commercial vehicle segments.

The M&HCV segment saw a strong growth of 52%, at 10,926 units this August as against 7,190 units sold in August 2016. This segment witnessed strong pick-up in demand on the back of continuously increasing acceptance of the SCR technology, and driven by stricter implementation of regulatory norms on overloading, as well as very good demand from specific sectors such as trucks and construction tippers.

The I&LCV truck segment also saw an upward trajectory at 3,881 units, growing by 44% from 2,703 vehicles sold in August 2016, buoyed by increased buying with the onset of the festive season. Tata Motors Passenger Carriers sales including buses were at 4,078 units in August 2017 going down by 4% from 4,238 units sold in August 2016. The de-growth was largely due to delay in procurement from the State Transport Undertakings.

The SCV cargo and pickup segment continued the growth momentum at 12,681 units, higher by 35% over 9,377 units delivered last August. The uptick in this space comes on the back of growing demand for new product introductions including the Tata Ace XL range and the Tata Xenon Yodha pickup.

The company’s sales from exports was at 3,082 vehicles in August 2017, a decline of 53%, compared to 6,595 vehicles exported in August 2016, mainly due to continued drop in industry volumes in Sri Lanka and Nepal.