Tata Motors sees Feb sales drop 32%

Tata Motors on Sunday, 1 March 2020, said its total auto sales fell 32.44% to 40,634 units in February 2020 compared to 60,151 units in February 2019.

The total sales fell 15.10% in February 2020 from 47,862 units in January 2020.

Total domestic sales tanked 34% to 38,002 units in February 2020 as against 57,221 units in February 2019.

Total commercial vehicle (CV) sales slumped 33% to 28,086 units in February 2020 as against 41,882 units in February 2019. Total domestic CV sales fell 35% to 25,572 units while total CV exports fell 9% to 2,514 units during the period under review.

Total passenger vehicle sales slipped 31% to 12,430 units in February 2020 as against 18,110 units in February 2019.

Commenting on the sales figures, Girish Wagh, the president of commercial vehicles business unit in Tata Motors, has said that, Commercial vehicle domestic sales in February 2020 were 35% lower than last year. Retail in February was ahead of wholesale by 37%, helping bring down stocks even further to an all-time low. Retail in M&HCV grew by 23% over last month with fleet buyers stepping up purchases. We are on track for the BSVI migration, with BSIV stocks being consumed as per plan and BSVI production initiated. The supply disruptions from the COVID-19 outbreak in China could have some impact on the BSVI transition and all efforts are underway to mitigate it.

Mayank Pareek, the president of passenger vehicles business unit in Tata Motors, has stated that, Our new Altroz received an overwhelming response. Our NEW FOREVER product portfolio has built a strong order book since its launch end of January. However, the outbreak of COVID-19 in China and a recent fire incident at one of our strategic vendors affected the vehicle production and wholesale volume. Multiple actions are being taken to reduce the impact, staying close to our customers by providing transparency of the delivery situation. On a positive note our BSIV vehicle stock is well below the targeted level, we are well placed for the BSIV-BSVI transition and with the strong customer interest in the NEW FOREVER portfolio and a step up in market activation, we are confident of improving our market competitiveness and volume growth in the coming months.

Tata Motors' consolidated net profit surged 144.90% to Rs 1,738.93 crore on a 6.8% decline in net sales to Rs 71,051.42 crore in Q3 December 2019 over Q3 December 2018.

Tata Motors is engaged in manufacture of motor vehicles. It is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The firm's segments include automotive operations and all other operations.

Shares of Tata Motors rose 0.62% to Rs 129.65. The stock traded in range of Rs 127.95 and Rs 133.80 so far.

The scrip slumped 11.03% to end at Rs 129 on Friday, 28 February 2020.

Powered by Capital Market - Live News