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Tata Motors passenger vehicles sales impacted by consumer sentiments pre-GST; Commercial Vehicle business on an upturn Press kit

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1 July, 2017

Mixed consumer sentiments in June 2017 towards the implications of GST have impacted the passenger vehicles business sales, while the commercial vehicles business grew on month-on month basis, due to BS4 production ramp-up.

Tata Motors passenger and commercial vehicles total sales (including exports) in June 2017 were at 40,358 vehicles, lower by 9% over 44,525 vehicles sold in June 2016. The company’s domestic sales of Tata commercial and passenger vehicles for June 2017 were at 36,854 vehicles, lower by 5% over 38,718 vehicles sold in June 2016.

Domestic – Commercial Vehicles

Tata Motors Commercial Vehicles domestic business reported sales of 25,678 nos., lower by 2% over June 2016 but continues to grow month-on-month on the back of ramp up of BS4 production, across segments. Tata Motors has also strived to establish the BS4 vehicles with its new advanced SCR technology and customers are beginning to see the benefit of this technology which delivers good performance and class-leading fuel efficiency.

The M&HCV segment witnessed pick-up in demand and availability because of production ramp up in June. Markets shifting to rated load operations have increased demand for 37tonnes and 49 tonnes vehicles. While M&HCV business grew by 1% in June 2017 at 7,689 nos., over 7,637 sales in June 2016, the I&LCV truck segment grew by 1% at 2,628 mos., over 2605 vehicles sold in June 2016, on the back of good response to the new Ultra range in I&LCV segment.

The SCV cargo and pickup segment continued the growth momentum at 11,038 nos., higher by 10% over 10,029 units in June 2016 due to good response to the Xenon Yodha and the XL range of SCV.

Domestic – Passenger Vehicles

In June 2017, Tata Motors passenger vehicles sales were impacted by the mixed reactions towards GST resulting in low buying sentiments. The passenger vehicle business recorded sales of 11,176 nos., lower by 10%, over 12,482 nos. in June 2016. This drop in volume is seen temporary and will be recovered in the quarter to come based on 11% growth in April-June 2017 quarter compared to the last year.

Exports

The company’s sales from exports were at 3,504 nos. in June 2017, a decline of 40% compared to 5,807 vehicles sold in June 2016 owing to supply constraints.

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