Tata Motors ends year with 8 percent drop in sales: Sold 50,440 vehicles in December 2018

Tata Motors states that in December 2018, liquidity crisis in the industry, higher interest rates and rising fuel costs continued to impact the commercial vehicle sales. On the other hand, there are some areas where the company has reported positive sales growth.

By: | Updated: January 2, 2019 12:58 PM

Tata Motors has announced its sales numbers for the month of December 2018. During the period, the sales dropped by 8 percent as the company sold a total of 50,440 units as against 54,627 during the same period last year. The brand states that in December 2018, liquidity crisis in the industry, higher interest rates and rising fuel costs continued to impact the commercial vehicle sales, with M&HCV and I&LCV segment witnessing a decline while the passenger vehicle business bounced back. However, the cumulative sales for the domestic market during April-December 2018 was at 497,972 units compared to 398,764 units over last year, with a growth of 25 percent. Tata Motors' Commercial Vehicles domestic sales declined in December 2018 at 36,180 units, by 11%, compared to 40,447 units sold in December 2017. Cumulative sales for the period April-December 2018 at 341,575 units have grown by 27%, compared to 269,535 units sold last year same period.

The M&HCV truck segment declined by 27%, at 11,506 units, compared to 15,828 units over last December. This segment was largely impacted by drop in cargo sales due to low consumer sentiments. The addition of capacity in the parc with existing vehicles being registered for higher payload (increased axle load) also impacted sales. However, the tipper segment continued to grow strongly at 14% over last December and was relatively unaffected on the back of road construction, affordable housing, irrigation projects and government spending on infrastructure projects. The commercial passenger carrier segment recorded sales of 3,461 units, lower by 22% as compared to 4,411 units sold in December 2017. The company says that the segment has been impacted due to the slowdown in the procurement of buses by STUs and the permits for private hiring.

Speaking of passenger vehicles, the company recorded domestic sales recorded a growth of 1%, at 14,260 units as compared to 14,180 units sold in December 2017. On the other hand, the cumulative sales growth of PV in the domestic market for the fiscal (April-December 2018) were at 156,397 units, a growth of 21%, compared to 129,229 units, in the same period, last fiscal. Tata Motors' exports from CVs and PVs in December 2018 was at 3,999 units as against 6,293 units in December 2017, lower by 36%.

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