Subdued demand and an unenthusiastic market sentiment resulted in a continued decline in sales for carmakers for the month of August 2019. Tata Motors’s passenger vehicle sales, for the aforementioned month, shrunk by 58 per cent. The homegrown automaker sold 7,316 units in the passenger vehicle segment during Aug’19. During the same period last year, the carmaker sold 17,351 units. Commercial vehicle sales for Tata Motors also declined by 45 per cent in August 2019 wherein it sold 21,824 units. In comparison, during the month of August 2018, the company’s commercial vehicle sales stood at 39,859 units. Overall, the domestic vehicle sales of Tata Motors suffered a decline of 49 per cent with a sale of 29,140 units in August 2019 as opposed to 57,210 units during the same month last year.
In order to boost sales, Tata Motors will soon start rolling out offers and discounts on its products. In addition to this, the carmaker will also be introducing special editions of its existing models.
In order to provide the required boost to the ailing auto industry, Finance Minister Nirmala Sitharaman recently announced a revival package. Under this, the FM ensured that going in the future, both ICE vehicles and EVs will continue to be registered. In addition to this, she cleared the air on the future of BS-IV vehicles registered till 31st March 2020, that they will continue to remain operational for their entire period of registration. The government has also lifted the ban on the purchase of vehicles by government departments. Also, the revision in the registration fees of vehicles has been postponed until June 2020.
According to Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd., “Under the challenging market situation, we continued to focus on improving retail sales. Our retail sales were 42% more than offtake and as a result, the network stock came down by over 3000 vehicles. This prepares dealers well for the festival season. Our prime focus remains on the working capital rotation of the channel. Our aim is to improve the retail capability, till August 2019, 72 new sales outlets were added and 3500+ sales executives were recruited.
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