Exports down by a whopping 58pc
MUMBAI: Tata Motors witnessed year-on-year drop in sales of 26 per cent during May 2019 at 40,155 units against 54,290 units sold in May 2018, as market sentiments continued to be muted.
The company’s sales from exports (CV and PV) in May 2019 were at 1,563 units, lower by 58 per cent over last May. Several factors like drop in retails in Bangladesh and Nepal, high stocks in SAARC region and slump in Middle East have affected the overall industry volumes in these markets.
The cumulative sales for the domestic market (April-May 2019) were at 82,684 units compared with 107,758 units over last year, a de-growth of 23 per cent, according to an official statement from the company.
Domestic – Commercial Vehicles Tata Motors Commercial Vehicles (CV) business sales in the domestic market in May 2019, at 29,329 units registered a drop of 20 per cent compared with 36,806 units sold last May.
“The market sentiments remain weak due to depressed freight rates and under-utilization of truck(s). Slowing economy and stagnant industrial output have also dragged down commercial vehicles (CV) sales in recent months,” the company statement added.
Cumulative CV sales volume in the domestic market for the fiscal (April-May 2019) was at 59,212 units, a decline of 19 per cent, compared with 73,082 units, in the same period last fiscal. The M&HCV sales in the domestic market in May 2019 declined by 38 per cent, at 7,683 units, compared with 12,424 units sold in May 2018.
The intermediate and light commercial vehicles (I&LCV) truck sales in May 2019 declined by 2 per cent at 4,043 units as compared with 4,106 units sold in May 2018
This segment has been relatively less affected by the revised axle load norms. E-commerce and discretionary consumption have been the two main drivers of I&LCV volume.
The new products introduced in the fast growing 15-16 Tonne segment and CNG products have been well accepted by the customers and now contribute to over 10 per cent of volumes.