After recording consistent double-digit growth over the past three months, commercial vehicle market leader Tata Motors’ overall sales in October 2017 moderated to 32,411 units, a year-on-year growth of percent (October 2016:30,169).
According to the company, the increase in sales comes on the back of a further ramp-up of production, growing demand for newly launched products as well as higher customer uptick due to increased consumption across sectors. This also coincided with peak festive season buying trends across segments.
Tata saw decent growth in the critical M&HCV truck segment which grew by 8 percent to 11,391 units as a result of increasing acceptance of the company’s SCR technology, infrastructure development led by government funding and restrictions on overloading. A combination of these factors has led to greater demand for new high-tonnage vehicles, especially 37T multi-axle trucks and 49T tractor-trailers.
The I&LCV truck segment also saw an upward trend, growing by 7 percent at 3,760 units in month driven by new product introductions. The pickup segment, with sales of 5,604 units in October 2017, reported strong growth of 45 percent with the Xenon Yodha and Ace Mega XL gaining acceptance and demand across markets. Growth in the SCV cargo segment though was flat with sales of 8,413 units.
Growth was missing from the passenger carrier (including buses) segment: at 3,243 units sold in October 2017, demand was lower by 17 percent over October 2016. It is understood that fresh purchases by STUs and the release of permits have been subdued.
Speaking on the company’s sales performance, Girish Wagh, head, Commercial Vehicle Business Unit, Tata Motors said, “With our business turnaround, our commercial vehicle business will continue to be our key focus and we will undertake appropriate measures to improve our performance across segments and cater to the discerning needs of our customers.”
Recommended viewing: Interview with Girish Wagh who speaks on executing the turnaround plan, new approaches at Tata Motors' core CV business to strengthen planning and execution to regain lost ground and sustain its leadership position, and how the company is preparing for electric mobility in India.