Tata Motors reports a 48% decrease in sales in August; PV worst hit
NEW DELHI: Tata Motors on Sunday it registered a 48.4% decrease in total sales to 32,343 units in August. The company had sold 62,688 units in national and international markets in the same period last year.
Sales in the domestic market were 29,140 units compared to 57,210 units in August 2018, down 49 percent.
Girish Wagh, president, commercial vehicles, business unit, Tata Motors, Subdued demand sentiment due to poor freight availability, lower freight rates and general slowdown in economy continued to hamper the commercial vehicle demand. System stock reduction through retail focus and aligning production, will continue to be our approach, while cautiously monitoring the market, in these challenging times. As a result, retail sales are estimated to be ahead of wholesale by over 25% in August. We are looking forward to a positive impact of the recently announced stimulus package by the government.
A total of 21,824 units of commercial vehicles were sold in the domestic market, 45% less than 39,859. But nevertheless, passenger vehicle Sales were most affected, since 7,316 were sold in August 2019, a 58% drop, compared to 17,351 units in August 2018.
Mayank Pareek, president, passenger vehicle , business unit, Tata Motors , “Under the challenging market situation, we continued to focus on improving retail sales. Our retail sales were 42% more than offtake and as a result the network stock came down by over 3000 vehicles. This prepares dealers well for the festival season. Our prime focus remains on the working capital rotation of the channel. Our aim is to improve the retail capability, till August 2019, 72 new sales outlets were added and 3,500+ sales executives were recruited."
By marking the beginning of the holiday season, we will drive positive feelings with special offers and several special editions. We have started this by further increasing the Harrier style ratio with the Harrier Dark Edition. We hope that the recently announced financial package of the finance minister will help improve market liquidity and reduce the cost of ownership. This will certainly help the industry revive and boost growth, he added.