Strong demand for Tiago, Tigor, Hexa pushes Tata Motors car sales up by 10% in July

Key highlights:

Tata Motors in July reported a 10% growth in domestic passenger vehicle sales as it sold 14,933 units during the month over 13,547 units sold in July 2016. This growth in sales it attributed due to the continued strong demand for its new launches Tata Tiago, Tata Tigor and Tata Hexa.

The domestic car segment, however, declined marginally by 1% as it sold 12,125 units.

The utility vehicle (UV) segment however saw large growth in sales powered chiefly by the strong demand for its newly launched Tata Hexa SUV. The UV segment of Tata Motors registered a 110% growth as it sold 2,808 units during the month of July.

Cumulative sales growth of all passenger vehicles in the domestic market for the fiscal were at 49,791 units, a growth of 10%, compared to 45,062 units, in the last fiscal.

The company’s domestic sales of the commercial and passenger vehicles for July 2017 were at 42,775 units, higher by 13%, over 37,789 units, in July 2016. Tata Motors' passenger and CV total sales including exports grew by 7% to 46,216 units over 43,160 units sold in the same month last year.

Tata Motors' commercial vehicles sales too did extremely well as it posted a 15% growth in the domestic market in July. CV domestic sales grew to 27,842 units during the month due to the ramp-up of BS4 production across segments.

The company also passed on the benefits of GST to consumers by reducing the prices of its vehicles across all CV segments, which contributed to the growth.

However, it was due to the rebound of the Medium & Heavy Commercial Vehicle (MHCV) segment in July 2017 and due to the pick-up in demand and availability because of continued production ramp-up that contributed to the growth of Tata Motors' CV sales.

New models launched in the fastest growing segments of 49 ton and 37 ton categories have also gained strong traction in the market. Sales of MHCV business grew by 10% in July 2017 at 8,640 units, over 7,879 sales in July 2016, establishing the wider acceptance of new SCR technology.

The ILCV truck segment also grew by 28% at 3,354 units, over 2,626 vehicles sold in July 2016, on the back of good response to the new Ultra range and the new BS4 range in other products.

Tata Motors Passenger Carriers sales (including buses), in July 2017 were at 4,472 units, declined by 15%, over 5,233 units, in July 2016, largely due to supply constraints in the Bus segment.

The SCV cargo and pickup segment continued the growth momentum at 11,376 units, higher by 34% over 8,504 units, last July 2016 due to good response to the Ace XL, Mega XL, Zip XL, and the Tata Yodha.

The company’s sales from exports was at 3441 nos. in July 2017, a decline of 36%, compared to 5,371 vehicles sold in July 2016, due to drop in volumes in Sri Lanka and Nepal.