Tata Motors has reported a decline in the commercial vehicles (CV) sales segment. Truck sales were at 35,722 units as against 38,560 units in the same month last year, down 7 percent.
A steep drop of 27% in June 2019 was also witnessed in the passenger vehicle segment, selling 13,351 units of passenger vehicles in the domestic market in June 2019 as compared to 18,213 units sold in the same period last year.
According to officials from Tata Motors, “The market continues to exhibit subdued demand sentiment as customers are postponing purchases given the poor freight availability, the falling freight rates affecting their viability,”
They also said that the slowing down of the economy is hurting overall customer sentiments and causing an impact on demand for fresh vehicles.
Another statement from Tata Motors reads, “The demand for M&HCV cargo vehicles continues to be low with the excess carrying capacity created with the higher axle load regulation last year. Operators are facing viability challenges due to low freight availability and falling freight rates. Tipper sales have also gone down by 12% Y-O-Y basis, as there is slowdown in the execution of existing infrastructure projects, delayed payments to contractors and lack of new projects,”.