In July 2018, the auto industry faced challenges with the new axle load limits regulation, followed by transporters strike which continued for 8 days. Despite these challenges, Tata Motors sales in the domestic market in July 2018, grew by 21%, at 51,896 units compared to 42,775 units over previous year. On cumulative basis (April-July 2018), Tata Motors registered a strong growth of 51 % at 216,475 units, compared to 142,916 units over previous year due to the continued robust month-on-month sales performance of its Commercial and Passenger Vehicles Businesses in the domestic market. While Tata Motors will maintain cautious optimism in the market, it will continue to focus on its 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 domestic sales continued to grow in July 2018 at 34,817 units, higher by 25%, over last year July, despite the uncertainty amongst customers in the market. Cumulative sales for FY18-19 (April-July 2018) at 146,459 units have grown by 57% over last year same period. The commercial vehicles continue to be in demand as the economy continues to grow, led by infrastructure growth with increased government spending, robust private consumption and due to the improved industrial activity.
While the M&HCV segment was impacted due to the new regulation on axle load limits due to the uncertainty around the new limits applicable to the existing fleet of trucks, this segment registered a strong performance with 10,233 units, a growth of 18% over July 2017. The demand for M&HCV 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. Tata Motors BS4 range of Signa and Prima trucks and tippers continue to gain acceptance amongst the customers for their superior performance.
The I&LCV truck segment reported a significant performance with 3,985 units, a growth of 17%, over July 2017. The robust growth in I&LCV sales has been led by the e-Commerce sector, increased rural consumption and supported by new products. The recently launched range of Tata Ultra I&LCV trucks is gaining significant acceptance and contributing to the volume growth.
The SCV Cargo and Pickup segment recorded a strong growth of 38%, at 15,639 units, compared to last July. Growth in the e-Commerce sector, the hub-spoke model continuously evolving 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 and has seen a strong surge in its sales.
The commercial passenger carrier segment posted a growth of 12% with sales at 4,960 units in July 2018. This was led by a significant demand for school buses, vans and supported by demand for ambulances. The STU buying is also showing an uptick in demand.
Domestic – Passenger Vehicles
While the consumer sentiments in the industry remained muted due to the impact of monsoon and the 8-day long transporters strike, Tata Motors’ Passenger Vehicles (PV) domestic sales in July 2018 continued its growth trend at 17,079 units, higher by 14%, over last year. This is driven by continuous strong demand for Tiago, Tigor, Hexa and Nexon. 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-July 2018) is at 70,016 units, a growth of 41% compared to 49,791 units for the same period, last fiscal.
The company’s sales from exports (from CV and PV) in July 2018 was at an impressive 4,971 units compared to 3,441 units last year, a growth of 44%. On the commercial vehicles front, our international markets continue to show strong growth in FY19, with overall exports in July 2018 growing 48% and M&HCV exports growing 117% compared to July 2017.