In my earlier reports on Sales Updates of Tata Motors (India) business, I have been sharing the progress the company has been making on a Trailing-Twelve-Months basis. In this report I will be sharing the Segment-wise Quarterly Numbers of the company.
Here are the links to the earlier reports:
7th Dec'17: Tata Motors Ltd. - Gaining it's momentum back!!
In the M&HCVs segment, Tata Motors has posted a stupendous growth of 96% in Q1-FY'19 compared to Q1-FY'18. Part of this growth figure is due to the abnormally low figures of Q1 in last fiscal. But still the figures for Q1 of this fiscal are higher by about 30% when compared to Q1 of FY'17 too. Hence the sales of M&HCVs have been really good for Tata Motors, thanks to the new models launched by the company in the previous fiscal and the strong growth in Infrastructure sector of the country. Coming to LCVs, the segment recorded a growth of over 47%, selling almost 70,000 units during the quarter. This is inline with the strong sales recorded during the previous 3 quarters, with continued strong response to the new upgraded models launched by the company over the previous couple of quarters and strong growth in e-Commerce segment alongwith development of the hub-and-spoke model in various regions.
The Cars & UVs segment too has done extremely well, riding primarily on the success of the Tiago and the Nexon models, supported to some extent by the Tigor and the Hexa. Tata Motors has completely phased out the Nano, Indica & Indigo eCS models. Even the sales of Zest & Bolt are on the decline. The company is focusing on producing more of the new generation models and is now readying to upgrade it's Showrooms & Sales experience before the introduction of it's first model on the latest Modular platform. Just this week, Tata Motors has announced the name of the new SUV to be based on this new platform, which has been developed in association with Land Rover, as the Tata Harrier. During Q1-FY'19, Tata Motors reported a growth of over 51% in sales of Cars & UVs.
Over the next few quarters, I am expecting the growth rates for Tata Motors to taper down to around 20% levels as it will face high-base effect of strong numbers during Q2-Q4 of last fiscal. Even this growth will be considered to be healthy and will help the company improve it's profitability significantly during the current fiscal.
Here are the links to the earlier reports:
7th Dec'17: Tata Motors Ltd. - Gaining it's momentum back!!
6th Jan'18: Tata Motors Ltd. - December'17 Sales update.
6th Apr'18: Tata Motors (India) Sales Update: Post March'18
As we all know, the entire Automotive Industry in India suffered a setback around the end of March'17 when the SC declared that BS-III vehicles cannot be sold in the country from 1st April'2017. Not all vehicle manufacturers were ready with BS-IV compliant engines for their entire model range. The Commercial Vehicles division of Tata Motors was amongst the worst sufferers due to this event. The sales figures collapsed nearly 50% for Tata Motors CVs in April'17 and then started ramping up over the next few months. Still Tata Motors had reported a 33% drop in sales of M&HCVs during Q1-FY'18. The drop was less than 7% for LCVs, whereas the Cars & UVs segment had reported a modest growth of about 9% in Q1-FY'18.
Tata Motors had done a stellar recovery in sales from all three segments over the following 3 quarters of FY'18. With the company continuing to grow with good momentum during the initial months of FY'19, the Y-o-Y sales growth has been just spectacular. Have a look at the following table:
In the M&HCVs segment, Tata Motors has posted a stupendous growth of 96% in Q1-FY'19 compared to Q1-FY'18. Part of this growth figure is due to the abnormally low figures of Q1 in last fiscal. But still the figures for Q1 of this fiscal are higher by about 30% when compared to Q1 of FY'17 too. Hence the sales of M&HCVs have been really good for Tata Motors, thanks to the new models launched by the company in the previous fiscal and the strong growth in Infrastructure sector of the country. Coming to LCVs, the segment recorded a growth of over 47%, selling almost 70,000 units during the quarter. This is inline with the strong sales recorded during the previous 3 quarters, with continued strong response to the new upgraded models launched by the company over the previous couple of quarters and strong growth in e-Commerce segment alongwith development of the hub-and-spoke model in various regions.
The Cars & UVs segment too has done extremely well, riding primarily on the success of the Tiago and the Nexon models, supported to some extent by the Tigor and the Hexa. Tata Motors has completely phased out the Nano, Indica & Indigo eCS models. Even the sales of Zest & Bolt are on the decline. The company is focusing on producing more of the new generation models and is now readying to upgrade it's Showrooms & Sales experience before the introduction of it's first model on the latest Modular platform. Just this week, Tata Motors has announced the name of the new SUV to be based on this new platform, which has been developed in association with Land Rover, as the Tata Harrier. During Q1-FY'19, Tata Motors reported a growth of over 51% in sales of Cars & UVs.
Over the next few quarters, I am expecting the growth rates for Tata Motors to taper down to around 20% levels as it will face high-base effect of strong numbers during Q2-Q4 of last fiscal. Even this growth will be considered to be healthy and will help the company improve it's profitability significantly during the current fiscal.
