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    Tata Motors reports 27 per cent drop in passenger vehicle sales in June 2019

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    Nikhil Puthran

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    Tata Motors reports 27 per cent drop in passenger vehicle sales in June 2019

    - 27 per cent drop in passenger vehicle sales in June 2019
    - Seven per cent drop in commercial vehicle sales in June 2019
    - Slowing economy has affected customer sentiments

    In the last few months, passenger vehicle sales across car manufacturers has gone down considerably. Tata Motors, one of the country’s popular utility car manufacturer, has reported a 27 per cent drop in domestic passenger vehicle sales with 13,351 units sold last month as compared to 18,213 units sold in June 2018. Tata Motors attributes the drop in sales to liquidity crunch that has affected customer sentiments. The cumulative sales in the domestic market for the fiscal (April 2019 -June 2019) stood at 36,945 units, a drop of 30 per cent as compared to 52,937 units, in the same period last year. The company however expects the market to bounce back soon.

    In the commercial vehicle segment, Tata Motors has witnessed a seven per cent drop in sales with 35,722 units sold in June 2019 as against 38,560 units sold in the same month last year. It is believed that customers are postponing purchase plans given the poor freight availability and the falling freight rates affecting their viability. Moreover, weak economy is hurting overall customer sentiments and causing an impact on demand for fresh vehicles.

    Overall, Tata Motors Commercial and Passenger Vehicle Business sales in the domestic market has witnessed a drop of 14 per cent at 49,073 units as compared to 56,773 units sold in the same period last year. The cumulative sales for the domestic market (April 2019 - June 2019) have also declined by 20 per cent with 1,31,879 units sold as compared to 1,64,579 units sold over the same period last year.

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