Domestic - Commercial Vehicles
Tata Motors Commercial Vehicles (CV) Business sales in the domestic market for FY19 (April 2018 – March 2019), recorded a growth of 17% with 468,692 units compared to 399,317 units sold during the same period last year. The CV domestic sales in March 2019, grew by 4% at 50,917 units, compared to 49,174 units sold last year. The market however, continues to exhibit subdued demand on back of lingering effects of liquidity crisis, lag effect of the implementation of revised axle load norms, slowing economy and weak IIP growth index. The base effect is also playing a role in the muted growth of CV industry w.r.t. H2 FY 18.
The M&HCV sales in the domestic market for FY19 (April 2018 – March 2019), registered a growth of 12% at 151,105 units compared to 134,399 units sold last fiscal. The M&HCV domestic sales in March 2019 declined by 9%, at 15,327 units, compared to 16,886 units sold in March 2018. The MHCV cargo trucks continue to be sluggish with the implementation of revised axle load norms. Post the axle load norms implementation, the freight carrying capacity of MHCV parc has increased by 20%, but the freight growth has not been able to absorb this increased capacity resulting in lower demand for new trucks. The slowing economy coupled with purchase deferrals during election season have also contributed to subdued demand for MHCV cargo truck in the recent months. However, the tipper segment on the other hand continued to grow by 12% on back of infrastructure development and affordable housing projects.
The I&LCV truck sales in the domestic market for FY19 (April 2018 – March 2019), reported a strong growth of 23% at 56,996 units compared to 46,321 units sold last fiscal. In March 2019, the I&LCV truck segment registered a growth of 17% at 6,730 units as compared to 5,737 units sold last year. This segment has not been much affected by the increased axle load norms and lower diesel rates resulting in improved sentiments in this segment. The demand in I&LCV segment has been led by the growth in e-commerce sector and discretionary consumption. The new products introduced in the fast growing 15-16 tonne segment and CNG products have been well accepted by the customers and are contributing to over 10% in volumes.
The SCV Cargo and Pickup sales in the domestic market for FY19 (April 2018 – March 2019), registered a robust growth of 24% at 206,393 units compared to 166,727 units sold last fiscal. In March 2019, the SCV Cargo and Pickup segment recorded a growth of 11% at 21,621 units as compared to 19,464 unit sold last year. The evolving hub-spoke model, demand for the last mile connectivity across the rural and urban markets, and Swachch Bharat initiatives have led to increase in demand in this segment.
The commercial passenger carrier segment sales in the domestic market for FY19 (April 2018 – March 2019), grew by 4% at 54,198 units compared to 51,870 units sold last fiscal. In March 2019, the commercial passenger carrier segment recorded sales of 7,239 units, grew by 2% over last year, due to increased demand for school buses, in addition to the growth in Winger sales for ambulances and school requirement. The new product introduction of 15-seater Winger has received good traction and the deliveries of electric buses to various STUs has also contributed to this growth.
Domestic - Passenger Vehicles
Tata Motors Passenger Vehicles Business sales in the domestic market for FY19 (April 2018-March 2019) were the highest ever in the last six years at 210,143 units, a growth of 12%, compared to 187,321 units sold last fiscal. Due to continued weak consumer sentiments, the PV domestic sales in March 2019 witnessed, a drop of 12%, at 17,810 units, as compared with 20,266 units sold last year due to low customer sentiments in the market. With Nexon, Hexa and now Harrier joining the new generation UV products, this segment has grown by 16% over last year.
The company’s sales from exports (CV and PV) in March 2019 was at 5,952 units, lower by 11% over last year, due to new regulations and political uncertainty in Sri Lanka and slump in Middle East affecting the overall Industry volumes in these markets.