Tata Motors Commercial Vehicle Sales Report: Impact And Expectations
Published On Apr 02, 2024 12:48 PM
Tata Motors remains cautiously optimistic about domestic commercial vehicle demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation. Read on to find out more
Tata Motors sales in the domestic and international market for Q4 FY 2023-24 are reported to be 2,65,090 vehicles, compared to 2,51,822 units during Q4 FY 2022-23. Domestic sales of MH&ICV in March 2024, were 19,976 units vs 22,437 units in March 2023; In Q4 FY24 it was 50,643 units, compared to 54,435 units in Q4 FY23.
Additionally, domestic and international sales for MH&ICV in March 2024, was 20,551 units while it was 23,074 units in March 2023 and in Q4 FY24 it stood at 52,186 units, vs 56,059 units in Q4 FY23.
Related Link: Tata Motors Announces Price Hike On Commercial Vehicles From April 2024
Insights: What Does Tata Motors Have To Say?
Girish Wagh, executive director, Tata Motors, said, “The financial year 2024 (FY2024) began on a promising note for the commercial vehicles industry with the industry expecting to scale the previous volume peak achieved in FY19.
The trend of year-on-year sales growth in volumes across most segments of H1FY24 moderated in H2 due to the combined effects of a high base, elections held across 5 states in Q3FY24 and upcoming General Elections in Q1FY25.
The industry transitioned to the BS6 Phase II emission norm and we used this opportunity to enhance key attributes across our entire vehicle portfolio significantly. Equipped with smarter technologies to deliver even better performance and value, the advancements have been well received by customers leading to overall sales of - 3,96,000 units in FY24.”
Impact On Domestic Sales
Girish Wagh added that in Q4FY24, domestic sales at 1,04,922 units were marginally lower than Q4FY23 sales of 1,12,145 units, which had benefitted from increased pre-buy due to the BS6 Phase II transition. The M&HCV segment contracted marginally – 6 percent vs Q4FY23, with demand continuing from the government’s infrastructure initiatives, expansion in core industries, and sustained growth in e-commerce.
The passenger commercial vehicles segment continued to register robust post-pandemic recovery with sales rising - 38 percent vs Q4FY23. Sales volume of small and light commercial vehicles reduced by 10 percent vs Q4 FY23 largely due to financing constraints experienced by the ‘First Time User’ category.
What To Expect?
Tata Motors asserts that going forward, with a promising GDP growth outlook, incentives from the government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra-related developmental projects, demand for Tata Motors’ commercial vehicles is expected to improve from the latter half of Q2FY25.