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Tata Engineering CV sales begin to look up

Our Bureau

MUMBAI, Aug. 9

FOR the first time in several months, the domestic market leader in commercial vehicles (CVs), Tata Engineering, has reported a rise in CV sales.

However, a senior company official, while agreeing there was a slight improvement in the CV market, especially in the heavy truck segment, cautioned against seeing any sectoral revival in the numbers as market conditions were still uncertain.

Tata Engineering today informed of a 5.5 per cent year-on-year increase in sales of CVs and a 19 per cent rise in Indica sales, for July 2001.

CV sales increased to 5,832 units in July 2001 as compared to 5,530 units in July 2000. The offtake increase was in medium and heavy CVs (M&HCVs) which was 4,115 units (3,483) while light commercial vehicles (LCVs) declined by 16 per cent to 1,717 units (2,047).

``We are seeing a slight uptrend in truck sales, especially the heavy ones. The market is moving in that direction, but one swallow does not make a summer. We would like to be cautious as there is a lot of uncertainty in the market,'' Mr Ravi Kant, Execu tive Director, Tata Engineering, said when contacted.

He attributed the sales rise in M&HCVs, partly to the market itself beginning to patronise multi-axle CVs which now make up 40-45 per cent of industry sales. The sectoral restructuring multi-axles are causing by their perception in road transport and oth er markets as cost competitive products, had been drawing down cost and making operations competitive, Mr Ravi Kant said.

What has been particularly satisfying for Tata Engineering is that the retail sales figure in July rose by 500-600 units despite the company closing its books exactly at last month-end, thereby keeping a few contracts out. Mr Ravi Kant said he expected L CV sales also to pick up in due course, notwithstanding the load fragmentation going on in favour of smaller vehicles.

Indica sales rose by 19 per cent to 4,205 cars in July 2001. ``This robust performance came on the back of a 16.5 per cent growth in June this year and the car ended the first four months of the current financial year with a total sales of 16,973 numbers ,'' Tata Engineering said in a statement.

Indica's market share in its segment stood at 18.2 per cent, an increase over the year-ago share of 16.8 per cent.

Utility vehicle sales in July 2001 were 1,744 units (2,233) with a cumulative sale of 7,497 units during this fiscal. Safari sales grew by 21 per cent to 166 following the launch of the `Ex' model.

For July 2001, the passenger car business unit of the company registered a total sale of 5,952 vehicles adding up to 24,507 vehicles sold till end-July 2001. ``The overall industry has grown by a marginal 0.7 per cent for the first four months of the cur rent financial year with a significant growth only in June,'' the statement said.