MUMBAI: Tata Motors commercial and passenger vehicles business sales in the domestic market for full year ending March 31, 2019 (April 2018 – March 2019), grew by 16 per cent with 678,486 units as compared with 586,507 units over the same period last year.
In March 2019, the company witnessed its sales drop by 1 per cent to 68,709 units as against 69,409 units sold in March 2018, as weak consumer sentiments continued.
Domestic – commercial vehicles
Tata Motors commercial vehicles (CV) business sales in the domestic market for 2019 (April 2018 – March 2019), recorded a growth of 17 per cent with 468,692 units compared with 399,317 units sold during the same period last year.
The CV domestic sales for March 2019 grew by 4 per cent at 50,917 units, compared with 49,174 units sold last year. “The market however, continues to exhibit subdued demand on back of lingering effects of liquidity crisis, lag effect of the implementation of revised axle load norms, slowing economy and weak,” the company statement noted.
Index of Industrial production (IIP) growth index
The base effect is also playing a role in the muted growth of CV industry with respect to second half of the financial year 2018. The Medium and Heavy Commercial Vehicle (M&HCV) sales in the domestic market for FY19 (April 2018- March 2019), registered a growth of 12 per cent at 151,105 units compared with 134,399 units sold last fiscal.
The M&HCV domestic sales in March 2019 declined by 9 per cent, at 15,327 units, compared with 16,886 units sold in March 2018. The MHCV cargo trucks continue to be sluggish with the implementation of revised axle load norms. Post the axle load norms implementation, the freight carrying capacity of M&HCV parc has increased by 20 per cent, but the freight growth has not been able to absorb this increased capacity resulting in lower demand for new trucks.
The slowing economy coupled with purchase deferrals during election season have also contributed to subdued demand for M&HCV cargo truck in the recent months. However, the tipper segment on the other hand continued to grow by 12 per cent on back of infrastructure development and affordable housing projects.