Tata Motors vehicle sales drop 4% on higher interest rate regime

Leading commercial and passenger vehicles maker, Tata Motors reported a total sale of 46,947 vehicles (including exports) for the month of November 2007, representing a decline of 4% compared to 49,061 vehicles sold in November last year. Cumulative sales for the company at 359,251 vehicles grew 0.3% over last year. The domestic market continues to be sluggish, due to the high interest rate regime continuing to affect retails.

Commercial Vehicles
The company`s sales of commercial vehicles in November 2007 in the domestic market were 26,895 vehicles, a growth of 4% compared to 25,793 vehicles sold in November last year. M&HCV sales stood at 14,426 vehicles, a growth of 0.2% over November 2006, while LCV sales were 12,469 vehicles, a growth of 10% over November 2006.

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 186,869 vehicles, a growth of 2% over last year. Cumulative M&HCV sales stood at 97,182 vehicles, a decline of 7% over last year, while LCV sales for the fiscal were 89,687 vehicles, an increase of 14% over last year.

Passenger Vehicles
Passenger vehicle business achieved total sales of 16,322 vehicles in the domestic market in November 2007, a decline of 16% over November 2006. The Indica reported sales of 10,488 vehicles, a decline of 19.6% over November 2006. The Indigo family registered sales of 2,014 vehicles, a decline of 29.5% over November 2006. November 2006 had a high base month for car sales in view of the full supply impact post the restoration of the company`s paint shop, which had got damaged in a fire in late September 2006. The Sumo and Safari accounted for sales of 3,820 vehicles, a growth of 7% over November 2006. The new Safari Dicor 2.2 VTT recorded a 55% growth with sales of 1,775 vehicles.

Cumulative sales of passenger vehicles in the domestic market for the fiscal were 136,820 vehicles, a decline of 2.6% over the same period last year. Cumulative sales of the Indica at 90,614 vehicles, reported a decline of 1.3%. Cumulative sales of the Indigo family were 18,679 vehicles, a decline of 12%. The company reached the landmark of producing a million vehicles off the Indica platform in November 2007, in a period of just less than nine years. Cumulative sales of Sumo and Safari were flat at 27,527 vehicles. The Safari recorded a 25% growth with sales of 10,695 vehicles.

Shares of the company gained Rs 3.45, or 0.47%, to settle at Rs 736.8. The total volume of shares traded was 66,507 at the BSE. (Monday)