Tata Motors, one of India's leading automobile manufacturers, reported a significant decline in sales for September 2024, reflecting broader industry trends. The company's total sales, including both domestic and international markets, dropped by 11.52% to 215,034 units compared to 243,024 units in September 2023.
The decline was more pronounced in the commercial vehicle segment, where sales slipped by 23.12% to 30,032 units in September 2024, down from 39,064 units in the same period last year. This was largely driven by a slowdown in the sales of heavy commercial vehicles (HCV) and small commercial vehicles (SCV).
Segment-Wise Performance
In the commercial vehicle segment, Medium and Heavy Intermediate Commercial Vehicles (MH & ICV) sales, including trucks and buses, fell by 22.71% to 14,839 units in September 2024, compared to 19,199 units in the previous year. Domestic sales of MH & ICV declined by 23.62% to 14,190 units.
Passenger vehicle sales, including electric vehicles, also saw a decline of 9% to 41,313 units in September 2024, down from 45,317 units in the same period last year. This decline was attributed to slow consumer demand and seasonal factors, as well as the lapse of registration and road tax waivers in key states.
Market and Consumer Trends
The overall passenger vehicle industry in Q2 FY25 experienced a more than 5% decline in retails (Vahan registrations) compared to Q2 FY24, driven by slow consumer demand and seasonal factors. However, industry offtake was significantly higher than registrations, anticipating a strong start to the festive season, which resulted in a continued buildup of channel stock.
Despite the challenges, Tata Motors saw positive responses to new launches, such as the Curvv, which has received strong bookings across all its powertrains. The initial deliveries of the Curvv have commenced, and the company plans to ramp up production in Q3.
Impact on Shares and Market Outlook
The disappointing sales figures led to a reaction in the stock market, with shares of Tata Motors falling by 3% in early trading to Rs 936.90. The market cap of the firm also dropped to Rs 3.48 lakh crore on Thursday.
Girish Wagh, Executive Director at Tata Motors, expressed optimism about future demand, stating that with the easing of rains, increased infrastructure spending, and the arrival of the festive season, the company anticipates demand to pick up gradually in Q3.
For more detailed insights into the automotive industry and its trends, you can explore the automotive industry on Wikipedia.
