In what will be gladdening news for Tata Motors, both its passenger vehicle division as well as its commercial vehicle operation – the core business and the backbone for the manufacturer – have reported robust sales for September 2017. The strong second-quarter growth is driven by robust results for the third consecutive month.
For Tata Motors, which has recently embarked on an aggressive turnaround strategy to post smart growth and regain market share, its CV sales of 36,679 units will be a shot in its arm. This, as per SIAM numbers, points to a 37.83 percent year-on-year growth (September 2016: 26,610).
The company says sales grew on the back of strong ramp-up in production, growing demand for new products and higher customer uptick as a result of peak festive season buying trends across segments. Additionally, sales have received a fillip from strong growth in e-commerce segment sales and growing demand from the Swachh Bharat drive.
M&HCV sales back in growth lane
Tata Motors says it sold 12,259 M&HCV trucks (+25%) in September 2017. This pivotal segment witnessed strong growth in demand on the back of continuously increasing acceptance of Tata Motors’ SCR technology, infrastructure development led by government funding and restrictions on overloading, creating greater demand for new high-tonnage vehicles, especially for new launches of 37-tonne multi-axle trucks and 49-tonne tractor-trailers. The I&LCV (Intermediate & light commercial vehicle) segment has done well too with sales of 4,449 units (34%).
The pickup segment, which sold 5,569 units in September 2017, saw strong growth of 50 percent with the newly launched Tata Xenon Yodha gaining acceptance and demand across markets. The SCV cargo segment with sales at 10,040 units posted 40 percent growth, following good demand for the XL range. However, sales of passenger carriers (including buses) at 4,362 units, were flat.
Girish Wagh speaks to Autocar Professional
Speaking to Autocar Professional last month, Girish Wagh, Head – Commercial Vehicle Business Unit, Tata Motors, had said the company is focussing on two key pillars to drive grwoth: sales enhancement and cost reduction. He revealed the strategy to execute the turnaround plan, the new approach to strengthen planning and execution to regain lost ground and sustain its CV leadership position, and also how it is preparing for electric mobility in India.
Commenting on the strong sales performance in September, Girish Wagh, Head – Commercial Vehicle Business Unit, Tata Motors, said, “The business turnaround with focus on the CV business has been on the back of strong product portfolio across segments and intense customer engagement. With a growth of 29 percent in September 2017 compared to last year, our domestic CV sales continued to register robust growth for the third consecutive month. Our strong performance in Q2 with an average of 25 percent sales growth is a clear testament of our focused efforts to continuously improve and upgrade our products, while providing our customers with superior value and comfort.”