Receive up-to-the-minute news updates on the hottest topics with NewsHub. Install now.

Tata Motors, Ashok Leyland fall 2% after dismal December sales performance

2 January, 2019 4:41 AM
93 0
Tata Motors, Ashok Leyland fall 2% after dismal December sales performance

Country's second largest commercial vehicle maker Ashok Leyland also disappointed street by showing a 20 percent year-on-year decline in December sales.

Commercial vehicle makers Tata Motors and Ashok Leyland shares dropped 2 percent each after reporting dismal performance in December sales.

"The trend of muted consumer sentiments continued in December 2018, impacting the sales performance of Tata Motors commercial and passenger vehicles business in the domestic market," the company said.

The Tata Group firm sold 50,440 units in December 2018 (including commercial and passenger vehicles), lower by 8 percent against 54,627 units sold in same month last year. Nomura had expected sales at 55,800 units for the month.

Domestic commercial vehicle sales, which dented overall monthly growth, degrew by 11 percent to 36,180 units, but passenger vehicle sales increased by 1 percent to 14,260 units due to good demand for new generation passenger vehicles.

In December 2018, liquidity crisis in the industry, higher interest rates and rising fuel costs continued to impact the commercial vehicle sales, with M&HCV and I&LCV segment witnessing a decline while the passenger vehicle business bounced back, Tata Motors said.

The medium and heavy commercial vehicle (M&HCV) segment registered a 27 percent decline YoY to 11,506 units while I&LCV truck segment sales dropped 5 percent to 4,846 units in month gone by.

Tata Motors said sales from exports (from CV and PV) in December 2018 was at 3,999 units as against 6,293 units in December 2017, lower by 36 percent, due to sharp TIV contraction in Bangladesh due to elections and political uncertainty in Sri Lanka.

Meanwhile, country's second largest commercial vehicle maker Ashok Leyland also disappointed street by showing a 20 percent year-on-year decline in December sales.

The company sold 15,493 units during the month, down from 19,251 units sold in same month last year and which were also lower than Nomura expectation of 16,500 units, impacted by M&HCV.

M&HCV sales degrew by 29 percent to 11,295 units, but LCV sales increased 27 percent to 4,198 units in December.

Source: moneycontrol.com

Share in social networks:

Comments - 0