Tata Motors Reports 23% Drop in Wholesale Sales in September 2024

Key Highlights

• Tata Motors wholesale sales fell 23% in September 2024 to 28,631 units.
• Heavy commercial vehicles (HCV) experienced a 28% decline.
• Small commercial vehicle (SCV) sales dropped 26% to 10,848 units.
• Total domestic sales in Q2 FY25 decreased by 19% year-on-year.
• Optimism for recovery due to easing rains and increased infrastructure spending.

Tata Motors Limited, a leading automobile manufacturer, has announced a significant decline in its wholesale sales for September 2024. The company sold 28,631 units of commercial vehicles during this month, a 23% decrease compared to 37,214 units sold in September 2023.

Sales Overview

Decline in Heavy Commercial Vehicles

The decline was particularly noticeable in the heavy commercial vehicle (HCV) segment, which experienced a 28% drop. In September 2024, Tata Motors sold 9,295 HCV units, down from 12,867 units in the same month last year.

The intermediate, light, and medium commercial vehicle (ILMCV) sector also faced challenges, recording 5,387 units sold a 16% decrease from 6,377 units sold in September 2023. Additionally, passenger carriers sold 3,101 units, which is a 7% decline from 3,344 units during the same period last year.

Small Commercial Vehicle Segment Takes a Hit

The small commercial vehicle (SCV) segment saw the steepest drop, with sales dropping 26% to 10,848 units in September 2024, compared to 14,626 units in September 2023.

Girish Wagh, Executive Director of Tata Motors Ltd., stated that the total domestic sales for Tata Motors commercial vehicles in the second quarter of FY25 were 79,931 units, marking a 19% decrease from the previous year. However, he noted that sales in September 2024 were around 11% higher compared to August 2024.

Factors Influencing Sales Decline

Wagh attributed the decline to several factors, including:

• Slowdown in infrastructure project execution
• Reduced mining activity
• Decreased fleet utilization due to heavy rains

These issues contributed to a 25% year-on-year decline in the HCV segment and an 11% decline in the ILMCV segment for Q2 FY25.

Despite these challenges, the passenger commercial vehicle segment showed some positive news, with a 3% increase in sales compared to Q2 FY24. However, the SCV passenger utility vehicle (SCVPU) segment faced a 25% drop in volume. Wagh mentioned that the company is working on improving first-time user financing to boost sales in this area.

Looking Ahead

Looking forward, Wagh expressed optimism, stating that as the rains ease and infrastructure spending increases, along with the festive season approaching, demand for commercial vehicles is expected to gradually improve in Q3. He anticipates growth will be led by the ILMCV and bus segments, followed by medium and heavy commercial vehicles (M&HCV) and SCVPU.

Also Read: Mahindra Sales Report September 2024: Domestic CV Sales Rise to 33,750 Units; 25% Export Growth

CMV360 Says

Tata Motors faced a challenging September 2024, with a 23% drop in wholesale sales. Despite the decline, there is optimism for recovery in the coming months due to easing rains, increased infrastructure spending, and the festive season, potentially boosting demand across various commercial vehicle segments.