Driven by the success of new models such as the Hexa, Tiago and the latest Tigor, Tata Motors posted a 23 % sales growth in April 2017 over the same month last year. Volumes were registered at 12,287 units within the month. The sweetness of the growth, however, was turned a bit sour by the negative performance of the commercial vehicle segment, which was adversely affected by the Supreme Court's (SC) ban on BS III vehicles since 1st April, 2017. Commercial Vehicle (CV) segment sales in April 2017 were down by 36% over April, 2016. The decline was attributable to a strong flash sale of BSIII vehicles before the SC ban and the inability of the plants and the supply chain to cope up with the sudden demand for BS-IV vehicles. Exports in the same month were down by 21% to 30,972 units, comprising of both, CVs and PVs.
Commenting on the sales performance, Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, “While the industry faced short-term headwinds further to the BS III verdict, Tata Motors continued its robust sales performance with a growth of 23% in April led by a strong pipeline for Tiago and a positive response for our new lifestyle UV - Tata HEXA. We have successfully completed the launch of Tata TIGOR across the country and are delighted that it has been well received by our customers. We hope to see this momentum continue with an encouraging growth on the back of our strong product portfolio.”
This has been one of the strongest performances by Tata Motors in the recent past when talking about the Passenger Vehicle division. The division for years was struggling to come up to terms with technology at par with the segment. However, it was the Zest and Bolt that kick-started the change in product approach that is clearly evident today. The Tiago firmed up it's footing in a competitive segment despite being a late entrant. The Hexa too proved its mettle against the like of Mahindra XUV500 and Toyota Innova Crysta, testifying the change in perception that Tata has been able to successfully script in the recent past.
Although it's early days with the revamp of Tata Motors' product revamp, the direction seems to be right and the results are turning out to positive and the ink of the numbers is mostly black now.