India’s largest commercial vehicle (CV) maker Tata Motors registered 18 per cent drop in CV sales in April 2019. The company sold 29,883 units of CVs last month as against to 36,276 units sold last April as the sentiments among transporters continue to be weak. The postponement of demand due to general elections has also impacted CV sales, the company said.
The medium and heavy CV (MHCV) sales in the domestic market for Tata in April 2019 declined by 33 per cent at 9,403 units, compared to 14,028 units sold in April 2018. The MHCV cargo trucks continue to witness sluggish sales with the implementation of revised axle load norms, Tata said. It added that post the axle load norms implementation, the freight carrying capacity of the MHCV parcel has increased by 20 per cent, but the freight growth has not been able to absorb this increased capacity resulting in lower demand for new trucks.
Further, it said that the slowing economy coupled with purchase deferrals during election season have also contributed to subdued demand for MHCV cargo truck in the recent months. The Intermediate and Light CV truck sales in April 2019 recorded a growth of 10 per cent at 3,546 units as compared to 3,229 units sold in April 2018 as this segment has not been much affected by the low market sentiments.
The small commercial vehicle cargo and pickup segment in April 2019, witnessed a drop in sales at 13,996 units, lower by 4 per cent, as compared to 14,620 unit sold in April 2018. The farmers’ sentiment was impacted, especially with the lower-than-expected Minimum Support Price and procurement by government partially contributing to this slowdown, Tata said.