Tata Motors had sold 34,296 commercial vehicles in May 2013 which is 209 units less than the same month previous year. LCV sales were 24,173 in May 2013, which marked a growth of 9% MoM comparison, while M&HCV sales stood at 10,123 as against 12,451 units sold during May 2012, thus recording a de-growth of 19%.
For the period April-May for the year 2013, total of 70,321 units were sold as against 64,197 units during the same period in 2012. This is a 9% increase in sales. For the period April-May LCV recorded a 16% growth while M&HCV recorded a 11% decrease in sales in YoY comparison.
LCV's contributes 71% of sales for Tata Motors, while M&HCV's share stay comes down to 29% for the period April-May in 2013.
Recent figures from the central statistics office shows that the GDP for the year remains at a decade low of 5 per cent. Added to the this the lack of investments in the mining and manufacturing sectors have played a big role in worsening the situation of Commercial Vehicle Industry as a whole and unfortunately Tata Motors being one of the worst hit OEMs.
Tata is having more problems than just “poor economy”. They have a old product range, a new MD, new Purchase head, New Sales head etc. These are several changes of Tata management and work culture. Karl Slym is there since 1 Oct – and already it is 8 months, and results are needed – else change him !!!
One question: how good are Marcopolo-Tata buses versus competition? Do you think they may gain or lose market share?
The growth in LCV segment, clearly shows that TML is getting focus on the volume segment & also where there is still some momentum despite the economic stagnation. They have the appropriate product line up for the M&M HCV segment, post monsoon, performance can plot the proper trend.