- Tata Motors recorded a 32 percent decline in the group’s worldwide vehicle wholesale for the month of August to 72,464 units.
- This is the largest and fifth month in a row of sales decline for the automotive group amid the worst phase of the Indian automobile sector and the slowdown of the Indian economy.
Tata Motors recorded a 32 percent decline in the group’s worldwide vehicle wholesale for the month of August to 72,464 units. This decline also includes the sale number of the commercial and passenger vehicles under the Tata as well as Tata Daewoo and Jaguar Land Rover.
This is the largest and fifth month in a row of sales decline for the automotive group amid the worst phase of the Indian automobile sector and the slowdown of the Indian economy. The group is facing troubles across all the segments and brands due to global sales slowdown while the decline in commercial vehicles and passenger vehicles is largely due to the demand slowdown in India and JLR is suffering from slowing sales in its key markets of China and Europe and uncertainty due to a no-deal Brexit is also weighing on the business prospects of the British brand.
The global wholesale saw a decline of 22 percent to 47,098 units while for the commercial vehicles decline was much bigger at 45 percent to 25,366 units, the company informed in an exchange filing.
Source- Tata Motors
Recently, the company had a slump of 58 percent in domestic passenger vehicles sales for the month of August 2019 with 7316 units as opposed to 18,420 units sold in August last year. The total sale volume of company for last month stood at 32,343 units, a decline of 48 percent in volumes over 62,688 units sold during the same month last year. Tata Motors reported one of its lowest sales in nearly two decades.
President of Passenger Vehicles Unit, Tata Motors, Mayank Pareek said that “Given the current economic condition, they have focussed on improving the retail sales. The retail sales were 42 percent more than offtake and as a result, the network stock declined by 3000 vehicles. The dealers will be now prepared for the festive season.”
All the Automakers of India are now relying on a positive festive season and a package from the government to act as catalysts for the auto sector which was badly hit by the slowdown of the economy. With the OEMs requesting the government to grant a temporary reduction in GST rates, the customer buying sentiment is expected to finally pick up with the advent of the festive season.
