In October 2018, Tata Motors registered a strong growth of 18% at 57,710 units as against 48,886 units over last year due to the continued strong sales performance of its Commercial and Passenger Vehicles Business in the domestic market. The cumulative sales for the domestic market (April-October 2018) was at 397,062 units compared to 291,673 units over last year, a growth of 36%. The strong domestic performance of Tata Motors is a result of customized strategies of ‘Winning Decisively in CV,’ ‘Winning Sustainably in PV’ and ‘Winning Proactively in EV,‘ which are already underway and delivering results. The focus continues on aggressive sales enhancement, rigorous cost reduction and supply debottlenecking.
Domestic – Commercial Vehicles
Tata Motors’ Commercial Vehicles (CV) domestic sales continued to grow in October 2018 at 39,420 units, higher by 22%, over last year October, led by the continued acceptance of the BS4 products. Cumulative sales for the fiscal (April-October 2018) at 271,907 have grown by 40% over last year same period. Despite the liquidity constraints faced as of mid September, the commercial vehicles industry continues to grow on the back of strong economic activities, with growth in Index of Industry production (IIP) and core sectors. An early resolution to the liquidity crunch issue in the market will help sustain the growth momentum with fundamental drivers of demand still positive.
The M&HCV truck segment continued its strong growth momentum with 13,185 units, a growth of 16% over last year. This segment continues to grow due to government spending on infrastructure projects, affordable housing and irrigation projects. 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 at 4,841 units, growth of 29%, over October 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 Tata Ultra range of ILCV trucks is gaining acceptance and contributing to the volume growth.
The SCV Cargo and Pickup segment continued its growth momentum with sales of 18,209 units, up by 30%, over October 2017. With the hub-spoke model continuously evolving, the small commercial vehicles are in demand for the last mile connectivity needs across the rural and urban markets. The newly launched Tata Ace Gold has been well received by the customers and is seeing a strong demand.
The commercial passenger carrier segment recorded sales of 3,185 units, lower by 2% as compared to October 2017. This segment is impacted due to the slowdown in the procurement of buses by STUs and the permits for private hiring.
Domestic – Passenger Vehicles
October 2018, was a challenging month for the industry and recorded only 2% growth. Tata Motors’ Passenger Vehicles (PV) domestic sales registered an impressive performance with 18,290 units, a growth of 11%, compared to 16,475 units in October 2017. Cumulative sales growth of PV in the domestic market for the fiscal (April-October 2018) were at 125,155 units, a growth of 28%, compared to 97,892 units, in the same period, last fiscal.
Conceived and delivered in a span of 6 months with minimum monetary investment, Tata Motors introduced 4 new product interventions to maximize this festive season. The recently launched Tiago NRG, Nexon KRAZ limited edition, all-new Tigor and the JTP range of cars have received an overwhelming response in the market. The company expects the fervour to continue with the introduction of Tata Harrier in early 2019.
The company’s sales from exports (from CV and PV) in October 2018 was at 4,554 units as against 4,311 units in October 2017, up by 6%.
Mr. Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said,
Tata Motors Commercial Vehicles Business continues its growth momentum with an increase of 22% in October 2018 sales. The acceptance of our complete range of BS4 vehicles across category segments has been a critical factor for the strong growth trajectory. Despite the growth in CV sales being marginally impacted by the current liquidity crunch in the market, the industry is still upbeat with strong economic activity, bolstered by growth in IIP and core sectors. An early resolution to the liquidity crunch issue in the market will help sustain the growth momentum with fundamental drivers of demand still positive. Our M&HCV grew by 16%, 29% increase in the ILCV truck segment, 30% growth in SCV Cargo & Pickup, while CV Passenger degrew by 2% over last year.
Mr. Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd. said,
October 2018 was yet another month wherein Tata Motors outstripped the industry growth. While the industry grew at 2%, Tata Motors saw a robust growth of 11%. We are therefore pleased to sustain positive traction despite strong headwinds such as hike in fuel prices, higher interest rates and increase in insurance premium. We hope to continue this momentum in the approaching months on the back of our recent launches and the highly anticipated introduction of our SUV, Harrier.
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