Tata Motors posts 37% y-o-y jump in passenger vehicle sales; TVS Motor records 13% increase.
Improving macro and micro economic sentiment along with softening of interest rates have renewed the demand for cars in the urban markets which, in turn, helped automobile manufacturers to post significant increase in vehicle sales numbers in April.
Tata motors, the car-making arm of the salt-to-software conglomerate Tata Sons, have followed the performance of its peers— Maruti Suzuki, Honda and Hyundai—and posted a 37% y-o-y jump in passenger vehicle sales in April.
The Cyrus Mystry-led company sold 10,230 passenger vehicles in the first month of the current fiscal when compared to 7,441 vehicles the company sold during FY 15, on the back of a good performance of two of its offerings—Bolt (hatchback) and Zest (compact sedan), though on a very low base.
“Though weak rural demand continues to be a concern, the improving micro and macro economic sentiment helped the automobile manufacturers to register some growth in April,” said Amit Kaushik, principal analyst, IHS automotive.
Weak demand in the rural markets and low income growth continue to pull down motorcycle sales.
As a consequence, Hero Motocorp—India’s largest two-wheeler manufacturer —has registered a 7% year-on-year decline in motorcycle sales in April.
On the other hand, Chennai-based two-wheeler manufacturer TVS Motor Company continues to buck the trend and posted 13% y-o-y jump in two-wheeler sales to 1,62,516 vehicles in April. While motorcycle sales for the company grew by 13% to 74,953 units, scooter sales during the same period grew by 15% to 49,375 units.
Pointing to wards a recovery in the economy, the medium and heavy commercial vehicle sales for Tata Motors increased by 21% y-o-y to 10,179 units in April, though light commercial vehicles continued to decline by 18% y-o-y to 9,029 units during the same period. Overall, the commercial vehicle sales for Tata Motors decreased by 5% y-o-y during April.
Analysts say that fleet operators have started to add new trucks to their fleets as they expect increased availability of cargo from the manufacturing and mining sector in the coming months.