Tata Motors is facing some heat and saw a decline in its domestic sales by 3.8%. The company sold 50,470 units in November 2018 as compared to 52,464 units in the same month in 2017.
Tata Motors in an official statement mentioned that the reasons for the decline in sales was due to the higher interest rates and rising fuel costs which saw a decline in customer sentiments.
Apart from this the company`s Commercial Vehicles (CV) sales saw a decline of 5.15% (33,488 units) in the month of November as compared to 35,307 units sold during the last year.
The overall sentiment during this festive season has been muted and the profitability of small operator was also largely impacted due to reduced freight which was passed on by large operators on account of benefits passed from GST related credit.
Domestic sales in the passenger vehicles department saw a reduction of 1.01% to 16,982 units, when compared to 17,157 units sold in November 2017.
The company also stated that overall November 2018 has been a challenging month for the auto industry due to low buying sentiment which was caused by a number of factors such as retail finance non-availability and liquidity crunch.
Tata Motors has been launching new products in the market to revive consumer interest. Recent launches like the introduction of the Tata Tiago JTP and Tata Tigor JTP have been well received by the market. The company will also be launching the much-awaited Tata Harrier SUV in early 2019 which will bring more customers to Tata dealerships.
Medium and heavy commercial vehicle segment (M&HCV) saw a decline of 23.79% to 9793 units as compared to 12852 units sold during November 2017.
Light and intermediate commercial vehicles segment (I&LCV) saw an increase of 2.18% (4071 units) in sales as compared to 3984 units sold in same month last year.
The company`s exports during November 2017 dropped by 6.55 percent as compared to the same period last year.
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