Market Stability Eludes Tata Motors As Passenger Cars Face Hard Times

Tata Motors is still at the receiving end of the prevailing market doldrums as its sales outcome is going through a bumpy ride and market stability still seems a distant dream. Comparing the last three months global wholesales figure of Tata Motors Group, it is evident that this major Indian auto maker has been going through a high degree of volatile phase. On the other hand, due to the fall of Tata Motors’ passenger car kingdom, Mahindra & Mahindra (M&M), India’s leading SUV maker has climbed up to the 3^rd spot, tipping Tata.

Land Rover and Range Rover sales have been strong, bringing the company much-needed cheer.

April Mixed Bag

In April 2012, The Tata Motors Group’s global wholesales count stood at 87,377 nos. a minimal improvement, considering the same month in 2011 when the count was at 87,114 units. Its commercial vehicle segment received the maximum jolt as the global sales of Tata Motors Group’s entire commercial vehicle fleet, including - Tata, Tata Daewoo and the Tata Hispano Carrocera range - were 38,008 nos., in April 2012, lower by eight percent comparing the same period last year. It is to be pointed that its April, 2011 sales performance covering this segment was much better as the total sales counts of all commercial vehicles were 41,179 units, a growth of 20 percent considering the corresponding period of 2010.

In April this year Tata’s passenger vehicle segment displayed a spirited performance as the total Global sales of all passenger vehicles stood at 49,369 nos. in that month, up by seven percent over April, 2011. However, the growth rate was almost identical with that of the April 2011 when it found 45,935 customers for its passenger vehicles.

However, Jaguar land Rover, Tata Motors’ latest power-horse in the global perspective, continues to be real showstopper in its global market. World-wide sales of Jaguar Land Rover in April 2012 stood at 25,143 vehicles, up by 29 percent over April, 2011 when it sold 19,431 units. Jaguar sales count in April this year accounted for 3,603 units, up by 17 percent, comparing with 3,079 units sold in the same month last year. It is refreshing outcome as last year Jaguar sales witnessed a 13 percent slump in April. On the other hand, Land Rover scored over Jaguar. In April this year Land Rover’s sales stood at 21,540 nos., a growth of 32 percent comparing April 2011 figure when the sales count stood at 16,352 units.

The iconic Fiat car sales performance received a jolt as global sales of Tata passenger vehicles and the distribution offtake in the domestic market of Fiat cars was counted at 24,226 units in April this year, down by nine percent comparing the performance of April 2011 when it recorded a five percent growth with a total sales count of 26,504 cars.

Indigo eCS sales have tapered off.

Promising May

In May this year, Tata Motors Group was once again returned into the promising zone with a smart growth of 10 percent over its April lukewarm performance. In that month The Tata Motors Group global wholesales accounted for 96,089 car counts, up by a strong 12 percent over May last year.

The previous month’s lose-making commercial vehicles too returned to profitable days as in May 2012 accounted for a total 45,025 cars in the entire global market, covering the total fleet of Tata, Tata Daewoo and the Tata Hispano Carrocera range, thus registering a growth of three percent over May 2011 when it sold 41,179units. However, in that month last year, commercial vehicle segment turned out to be a major achiever by registering a growth 20 percent over April 2010

As expected May once again turned out to be a prosperous month for the auto giant’s passenger vehicle segment with a total sales count of 51,064 units, thus registering a growth of 21 percent over the corresponding period last year when it sold 45,935 units.

Global sales of Jaguar Land Rover in May 2012 accounted for 30,094 vehicles, a superb growth of 35 percent over May 201. Range Rover Evoque and the 12MY Jaguar were the prime achievers. Jaguar sales figure for the month was counted at 4,342 units, up by three percent,

June Performance: Back in the Blues

The last month of the just concluded quarter showed negative signs for Tata Motors Group. The major pain area was the abysmal performance of the previous consistent achiever passenger segment while moderate performer commercial segment displayed positive signs. The Tata Motors Group global wholesales, including Jaguar Land Rover recorded 94,055 vehicles in the last month. It is a moderate growth of six percent over June 2011 but a decline of more than two percent comparing May 2011.

Global sales of the commercial vehicle fleet including, Tata, Tata Daewoo and the Tata Hispano Carrocera range were 47,896 nos., in June 2012, a growth of 6 percent.

Resurgence in Nano sales a positive for Tata.

On the other hand, in a reversal of fortune, global sales figure of Tata passenger vehicles stood at 17,944 nos., for the month of June, a decline of 21 percent over the same month last year. Moreover, the cumulative sales for the fiscal are at 62,140 nos., down by eight percent. Apart from strengthening taxi service, Indica is witnessing a fall in its appeal among the domestic car buyers and so is the case with Indigo. However, Tata Nano displayed a tad better performance despite the fact that several among these small wonder cars have gone up in flames. Last month it found 5,605 customers, a moderate growth of three percent, comparing the count of 5,452 Nanos sold in the same month last year. Indica’s sales have been down by 35 percent at 5,332 nos. comparing 8,188 nos., sold in June, last year. However, the Indigo range has been hardest hit as its Year-on-Year sales performance in June recorded a devastating 46 percent fall. Last month it sold only 2,658 cars in this range vis-a-vis 4,882 units, sold in the same month last year.

However, the UV cluster, including the Sumo/ Safari/ Aria/ Venture models has put up a bold performance as the total sales count in June 2012 was recorded at 3,649 units, a commendable growth of five percent, comparing corresponding period last year when it was 3,472 units.

JaguarLandRover is still proving to be the main achiever in Tata Motors Group’s global business. Global transaction of Jaguar Land Rover in June 2012 stood at 28,215 vehicles, up by 39 percent over June 2011. However, Jaguar witnessed a decline of five percent in the Year-on-Year sales count as of June as its sales for the month were 3,829 nos., while Land Rover was the real champion in the car market by registering a grand 49 percent growth at 24,386 nos. Considering the entire fiscal, Cumulative sales of the total sales count of Jaguar Land Rover family stands at 83,452 nos. in this period, up by 34 percent.