Tata Motors car sales drop 11%, CV sales down 6% in January

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Tata Motors car sales drop 11%, CV sales down 6% in January

Tata Motors, one of country’s biggest automobile manufacturers, recorded 11 percent decline in passenger vehicle volume during January as liquidity crunch hit retail demand.

The Mumbai-based maker of Harrier and Tiago models clocked 17,826 units in sales during January as against 20,055 units sold in the same month last year.

Other car makers such as Maruti Suzuki, Hyundai, Mahindra, have posted flat growth during January, while Honda posted the best growth of 23 percent during the same month.

“Low customer sentiments caused by non-availability of retail finance and liquidity crunch in the market impacted the passenger vehicle business,” said Tata Motors in a statement.

Its commercial vehicles domestic sales declined by 6 percent in January 2019 to 37,089 units, compared to 39,386 units sold last year.

‘Subdued market sentiments, high-interest rates, lag effect of implementation of revised axle load norms, slowing industrial output and declining IIP growth index were the primary factors behind the lull’, the company said.

The medium and heavy truck (MHCV) segment declined by 9 percent at 11,694 units, compared to 12,804 units sold in January 2018, due to weak sentiments among transporters as a result of the revised axle load norms announced in July ’18.

After the axle load norms implementation, the freight carrying capacity of MHCV has increased by 20 percent; however, the freight growth has not been able to absorb this capacity resulting in lower demand of new trucks. The tipper segment, on the other hand, continued to witness a strong growth on the back of road construction, irrigation and affordable housing projects.

The company’s sales from exports (from CV and PV) in January 2019 was at 3,270 units, lower by 37 percent over last year, due to the current liquidity crisis in Nepal, the formation of new government in Bangladesh and political uncertainty in Sri Lanka.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-02-02 19:08:19

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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