Tata Motors’ Passenger Vehicles continue growth momentum in April 2017; Commercial Vehicles strongly affected by the SC judgement
In April 2017, Tata Motors passenger vehicles, in the domestic market, continued its growth momentum at 12,827 nos., a growth of 23%, over April 2016, due to an encouraging response for its recently launched lifestyle UV, Tata HEXA and its latest Styleback, the Tata TIGOR. The Tata TIAGO continues to maintain good order pipeline.
Tata Motors commercial vehicles were affected by the Supreme Court judgement announced on March 29, with the ban on BS3 sales, leading to the need for a higher quantity of BS4 stock for April sales. The higher demand at short notice, was not met in production, as vendors struggled to meet with the higher demand, especially in the MHCV segments. Moreover, after the strong pre-buying of BS3 vehicles in March, and the price increase of BS4 vehicles (especially in the MHCV and Buses at 8-10%), demand for BS4 vehicles was also weak. The commercial vehicles sales in April 2017, in the domestic market, were at 16,017 nos., lower by 36% over April 2016. This is an unusual decline, in exceptional circumstances.
Tata Motors expects production, wholesales and retails to pick up in May and June.
Tata Motors passenger and commercial vehicle total sales (including exports) in April 2017 were at 30,972 vehicles, a degrowth of 21% over 39,389 vehicles sold in April 2016. The company’s domestic sales of Tata commercial and passenger vehicles for April 2017 were at 28,844 nos., lower by 19%, over 35,604 nos., in April 2016.
About Tata Motors:
Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR 2,75,561 crores (USD 41.6 billion) in 2015-16. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 9 million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, Australia, CIS and Russia.