The trend of muted consumer sentiments continued in December 2018, impacting the sales performance of Tata Motors commercial and passenger vehicles business in India, which dropped by eight per cent at 50,440 units as against 54,627 during a year ago period.
In December 2018, liquidity crisis in the industry, higher interest rates and rising fuel costs continued to impact the commercial vehicle sales, with M&HCV and I&LCV segment witnessing a decline while the passenger vehicle business bounced back.
The cumulative sales for the domestic market (April-December 2018) was at 497,972 units compared to 398,764 units over last year, a growth of 25 per cent, the company said in a statement on Tuesday (1).
Tata Motors’ commercial vehicles (CV) domestic sales declined in December 2018 at 36,180 units, by 11 per cent, compared to 40,447 units sold in December 2017.
The M&HCV truck segment declined by 27 per cent, at 11,506 units, compared to 15,828 units over last December. This segment was largely impacted by the drop in cargo sales due to low consumer sentiments. The addition of capacity in the parc with existing vehicles being registered for higher payload (increased axle load) also impacted sales.
However, the tipper segment continued to grow strongly at 14 per cent over last December and was relatively unaffected on the back of road construction, affordable housing, irrigation projects and government spending on infrastructure projects.
Tata Motors passenger vehicles (PV) domestic sales recorded a growth of 1 per cent, at 14,260 units in December 2018 as compared to 14,180 units sold in December 2017.
The company’s sales from exports (from CV and PV) in December 2018 was at 3,999 units as against 6,293 units in December 2017, lower by 36 per cent, due to sharp TIV contraction in Bangladesh due to elections and political uncertainty in Sri Lanka.