Key growth drivers: M&HCV (90%), I&LCV (73%), SCV Cargo & Pickups (47%) and Passenger Vehicles (61%)
Tata Motors registered a strong growth of 58% at 54,295units as against 34,461 units over last year due to the continued strong sales performance of its Commercial and Passenger Vehicles Businesses in the domestic market. The cumulative sales for the domestic market (April-May 2018) was at 107,806 units compared to 63,305 units over last year, a growth of 70%. In FY19, the Company has embarked on ‘Turnaround 2.0’, with 3 clear objectives viz. ‘Win Decisively in CV’, ‘Win Sustainably in PV’ and embed the turnaround culture in the organisation.
Domestic – Commercial Vehicles
Tata Motors’ Commercial Vehicles domestic sales in May 2018 were at 36,806 units, an increase of 56% compared to 23,606 units in May 2017. Cumulative sales growth of CV in the domestic market for the fiscal were at 73,082 units, a growth of 84%, compared to 39,623 units, in the same period last year. Post the Supreme Court ruling on BSIII to BSIV transition, sales were affected in Q1 last year as there was a huge pre-buy and also a limited supply of BSIV vehicles. The growth in May 2018 was on the back of various macro-economic factors like investment in improved industrial activities, infrastructure development and robust demand in the private consumption-led sectors.
The M&HCV truck segment continued its strong growth momentum with 12,424 units, a growth of 90% over last year. This growth has been led by the government’s focus on infrastructure development, road construction, building of irrigation facilities and housing projects across the country. Additionally, sectors like auto carriers, 3PL players, cement, steel and oil tankers are also driving growth. The SCR technology that was introduced in M&HCV trucks last year has gained customer confidence and continues to establish its TCO superiority.
The I&LCV truck segment reported a significant performance at 4,106 units, growth of 73%, over May 2017. This growth has been due to new product launches, E-Commerce and increased rural consumption. The recently launched Tata Ultra range of ILCV trucks is gaining significant acceptance and contributing to the volume growth.
The SCV Cargo and Pickup segment continued its growth momentum with sales of 15,567 units, up by 47%, over May 2017. With the growth in E-Commerce sector and the hub-spoke model continuously evolving, the small commercial vehicles are in demand for the last mile connectivity needs across the rural and urban markets. The newly launched Tata Ace Gold has been well received by the customers and is seeing a strong demand.
The commercial passenger carrier segment posted a growth of 14% with sales of 4,709 units in May 2018. The onset of the annual school season led the robust demand for school buses.
Domestic – Passenger Vehicles
With retails slowing down, May 2018, was a challenging month but Tata Motors’ Passenger Vehicles domestic sales registered an impressive performance with 17,489 units, a growth of 61%, compared to 10,855 units in May 2017. The Tata cars recorded a growth of 18% at 11,516 units driven by continuous strong demand for Tiago and Tigor, while the UVs continued to record an exceptional performance of 463% growth at 5,973 units, due to the strong demand for the Nexon and Hexa.
The recently launched Nexon AMT has received an overwhelming response and is witnessing good traction in the market. Cumulative sales growth of PV in the domestic market for the fiscal were at 34,724 units, a growth of 47%, compared to 23,682 units, in the same period, last fiscal.
The company’s sales from exports in May 2018 was at 3,699 units as against 3,900 units in May 2017