The auto major announced on Wednesday (1 July) that total domestic automobile sales slumped 82% to 23,845 units in Q1 June 2020 as against 1.31 lakh units in Q1 June 2019.
Sales were impacted by a sharp decline in the production of commercial as well as passenger vehicles owing to the lockdown and subdued market demand.Total commercial vehicles (CV) sales crashed 90% to 10,476 units in Q1 FY21 from 1 lakh units in Q1 FY20. Domestic CV sales tanked 90% to 9,274 units while CV exports tumbled 78% to 1,202 units during the period under review.
Commenting on the Q1 FY21 numbers, Girish Wagh, the president of commercial vehicles business unit of Tata Motors, has said that: "Amidst subdued demand environment, Q1 was marked by successful transition to BS-VI across the range of commercial vehicles. Domestic wholesale for Q1 FY21 was 9,274 units, a 90% drop over Q1 FY20. As the country moved to the unlock phase, all plants started operations from end of May and ramped up production gradually as parts availability improved. Retails was 67% behind wholesales due to negligible opening inventory at the dealers and muted demand. There are early recovery signs in a few sectors, and we look forward to a gradual pickup in demand on the back of overall economic recovery, while we continue to address the challenges of intermittent demand and supply disruptions from COVID-19."
Total passenger vehicles (PV) sales skid 61% to 14,571 units in Q1 FY21 from 36,945 units in Q1 FY20.
Shailesh Chandra, the president of passenger vehicles business unit of Tata Motors, stated, "The COVID-19 lockdown deeply impacted PV industry sales in Q1 FY21. After partial sales recovery in May'20, pent up demand supported a steeper recovery of retail in June'20. Passenger Vehicle Business cumulatively sold 14,571 units in Q1 FY21, which was -61% lower than Q1 FY20. Retail was stronger than wholesales by 27%, driven by the company's focus on retail while ensuring optimum inventory levels in the network. The New Forever product portfolio, including the newly launched Altroz, continues to receive a strong response in the market. The response to the company's EVs continues to be encouraging, with 328 EVs sold during the quarter."
As of 30 June 2020, Tata Motors has cash and cash equivalents of more than Rs 5,000 crore and undrawn committed facilities of Rs 1,500 crore.
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Tata Motors posted a consolidated net loss of Rs 9,671.25 crore in the Q4 March 2020 as against net profit of Rs 1,153.46 crore in Q4 March 2019. Net sales during the quarter fell 27.7% year-on-year (YoY) to Rs 61,949.39 crore.
Tata Motors, part of the $110 billion Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
Shares of Tata Motors rose 1.49% to Rs 102.20 on BSE. The stock traded in the range of Rs 100.80 to Rs 102.95 so far.
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