Exports Help Tata Motors Tide Over Demonetisation In November

Tata Motors Ltd. managed to hold on to its monthly sales figure in November, selling 38,900 vehicles as compared to 38,918 vehicles in the same month, previous year, as per the media statement put out by the company.

Exports were the saving grace for the country’s largest commercial vehicle manufacturer, which grew 57 percent year-on-year to 5,626 units against 3,573 units., last year. Exports grew 19 percent to 43,428 units, on a cumulative basis as well.

In India, commercial vehicles sales were the worst hit, declining 17 percent to 20,538 units. The company attributed the decline to the government’s demonetisation drive.

Sales of light and small commercial vehicles fell 13 percent while medium and heavy commercial vehicles saw a 28 percent drop. This is because long haul cargo operators were severely affected by the cash crunch and deferred on purchases, the media statement added.

Picking Up Pace

Tata Motors did see a robust sales pick up in the bus and construction vehicles category growing by 60 percent and 46 percent, respectively.

Passenger vehicles also witnessed a 22 percent growth in the domestic market, with the carmaker selling 12,736 units compared to 10,470 units in November 2015. The Tiago continues to be one of the bestselling cars in compact hatchback category.

Total cumulative sales of Tata Motors were higher by 8 percent at 3,50,549 vehicles sold compared to 3,24,966 vehicles in the previous year.