Commercial vehicles sales have dragged down what would have otherwise been a good May for Tata Motors Ltd. The country's largest commercial vehicle manufacturer sold 13 percent fewer trucks and buses last month, compared to the same period last year. The passenger car segment grew by 27 percent, during the same period, the company said in a stock exchange filing.
The medium and heavy commercial vehicle segment saw sales drop by 40 percent, year-on-year. The automaker attributed the drop to weak demand and severe shortage in fuel injection pumps to make all vehicles compliant with the new emission norms. The small commercial vehicle segment posted a growth of 10 percent, versus May last year.
The passenger car segment did much better last month, with new launches like the Tiago, Tigor and the Hexa driving volumes, said the company.
Exports declined 12 percent, after the Sri Lankan government hiked import tariffs on small commercial vehicles late last year, while the upcoming elections in Nepal also hampered sales in the mountain nation, said the company.
The company had earlier said that it expects sales to improve once the Goods and Services Tax is rolled out, and infrastructure activity picks up pace in the second half of the current financial year.
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