Tata Motors Global Sales Takes A Hit, Contracts By More Than 5%

Tata Motors after the market hours yesterday (June 12, 2014) announced its global May sales for the fiscal year 2015. As per the report, global sales of Tata Motors, including the sales of Jaguar and Land Rover (JLR) has declined by 5.14% by selling 77575 units during May 2014 as compared to May 2013.

The global sales got hampered during the month of May due to reduction in sales in the commercial vehicle segment. The sales in commercial vehicle segment i.e. Tata, Tata Daewoo and Tata Hispano Carrocera range has contracted by around 24.5%, by selling 29161 units as compared to same month of previous year. The passenger vehicle segment has seen a handsome growth of 12% on yearly basis by selling 48414 units for the month of May.

If we segregate the sales in the passenger vehicles, the global wholesale of Tata Passenger vehicles in May were 9416 units, reporting a fall of 21% as compared to the same month of previous year. The sale of JLR in this segment was up by around 25% during May 2014. If we further segregate the sales of JLR during May of this year we found the sales in Land Rover (LR) was up by 33% and the sales of Jaguar was down by 3% as compared to same period a year earlier. So we can say that the increase in sales of Jaguar helped JLR to post such a growth in this month.

Almost all the auto companies are facing a decline in sales during this period. The sales are down due to negative consumer sentiment, high inflation and higher interest rates prevailing in the country. Due to better sentiment from global markets JLR was able to post handsome sales during this month. As a new government is in the center and one who wants to give the stagnant Indian economy a push, we expect the auto sales to pick up in the domestic market too. The scrip of the company on BSE is trading at Rs 438, down by almost 2.6% from its previous close.