Tata Motors Ltd.’s sales rose for the second straight month as its commercial vehicle volumes jumped on the back of price cuts triggered by the Goods and Services Tax.
Overall sales of the automaker rose 14 percent in August to 48,988 units, on a yearly basis, according to an exchange filing. The domestic commercial vehicles segment clocked a 34 percent jump to 31,566 units. The pick-up was backed by the GST-induced price cuts, the company said in a press release.
Sales of medium and heavy commercial vehicles increased 52 percent to 10,296 units due to increasing acceptance of the selective catalytic reduction technology, that offers better power and higher fuel economy to vehicles, the company said. Stricter implementation of regulatory norms on overloading also helped boost the segment’s sales, India’s largest truckmaker said.
Domestic passenger vehicle sales rose 10 percent to 14,340 units from August last year, bolstered by a strong demand for utility vehicles.
The company exported 3,082 units in August, a decline of 53 percent over a year ago, due to a prolonged drop in demand in Sri Lanka and Nepal.
Other Key Highlights
- Overall domestic sales rose 26 percent to 36,510 units.
- Intermediate and light commercial vehicle segment sales expanded 44 percent to 2,703 units as consumer buying increased in the festive season.
- Passenger carrier sales, including buses, declined 4 percent to 4,238 units due to procurement delays from the state transport undertakings.
- Small commercial vehicles cargo segment rose 35 percent to 12,681 units.
- Car sales remained flat at 11,462 units.
- Utility vehicles' sales increased 84 percent to 2,878 units.