Tata Motors Global Sales Affected By Domestic Weakness
Sagar Lele / 17 Jul 2012
Tata Motors announced their global sales figures for the month of June 2012 on the back of which its stock prices declined by 2.63 per cent, closing at Rs 229.30 on Monday, 16 July 2012.
Globally Tata Motors sold 94,055 vehicles in June 2012 as compared to 89,846 in June 2011, spelling out a growth of 4.68 per cent. This figure has seen moderation lately mainly following the poor performance of the firm in domestic passenger vehicle sales which saw a decline of 21.60 per cent in June 2012 over the corresponding month in the previous year. The worldwide Tata Motors’ passenger vehicle sales reduced by 25.86 per cent in June 2012 on a YoY basis.
Contrary to this, Jaguar Land Rover (JLR) sales have been consistent in demonstrating robust growth worldwide. In June 2012, as compared to June 2011, JLR sales went up by as much as 38.59 per cent to 28,215 from 20,358. For the months of May 2012 and April 2012 as well, this figure has been strong when compared to the corresponding month in the previous year, with growth of 34.97 per cent and 29.40 per cent respectively.
In the domestic market, the situation for automobiles is no different than it has been since the beginning of the financial year. Passenger vehicle sales continue to pay the price of weak demand while medium and heavy commercial vehicles (M&HCV) have been witnessing consistent de-growth in the range of 20-30 per cent due to moderate industrial growth.
The global commercial vehicle sales are currently being supported and boosted by the sale of light commercial vehicles (LCV), resulting in a 5.77 per cent growth figure for the month of June 2012 over June 2011. Overall, performance being at the extremes for different segments has resulted in an average and modest global growth of 4.68 per cent in June 2012 YoY. We expect the automobile sector to remain sluggish till the beginning of the festive season by October 2012 after which sales would pick up. Till then, our outlook on Tata Motors would be to avoid investing in.
Global Sales For Tata Motors
| Category | Jun-12 | YoY % change | May-12 | YoY % change | Apr-12 | YoY% change |
|---|---|---|---|---|---|---|
| Global Sales | 94,055 | 4.68 | 96,089 | 8.88 | 87,377 | 0.30 |
| Commercial Vehicles | 47,896 | 5.77 | 45,025 | 2.17 | 38,008 | -7.70 |
| Passenger Vehicles | 46,159 | 3.59 | 51,064 | 15.58 | 49,369 | 7.48 |
| TML | 17,944 | -25.86 | 20,970 | -4.18 | 24,226 | -8.59 |
| JLR | 28,215 | 38.59 | 30,094 | 34.97 | 25,143 | 29.40 |
Domestic Sales For Tata Motors
| Category | Jun-12 | YoY % change | May-12 | YoY% change | Apr-12 | YoY % change |
|---|---|---|---|---|---|---|
| Domestic Sales | 58,270 | -4.89 | 60,128 | 6.29 | 57,305 | -4.69 |
| Commercial Vehicles | 41,026 | 4.47 | 39,625 | 6.60 | 34,647 | -5.69 |
| LCV | 28,363 | 22.26 | 27,174 | 25.58 | 24,818 | 8.84 |
| M&HCV | 12,663 | -21.22 | 12,451 | -19.84 | 9,829 | -29.47 |
| Passenger Vehicles | 17,244 | -21.60 | 20,503 | 5.68 | 23,658 | -6.99 |
| Exports | 6,071 | 19.18 | 4,219 | -23.76 | 2,781 | -34.69 |
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