Tata Motors Limited’s sales in both the domestic and international markets for Q4 FY 2023-24 reached 2,65,090 vehicles, compared to 2,51,822 units in Q4 FY 2022-23. In March 2024, domestic sales of Medium and Heavy Commercial Vehicles (MH&ICV) amounted to 19,976 units, a decrease from 22,437 units in March 2023. For the entire Q4 FY24, MH&ICV domestic sales totaled 50,643 units, compared to 54,435 units in Q4 FY23. Combining domestic and international sales for MH&ICV in March 2024, there were 20,551 units sold, down from 23,074 units in March 2023. Similarly, in Q4 FY24, the total stood at 52,186 units, compared to 56,059 units in Q4 FY23.
In March 2024, the Heavy Commercial Vehicles (HCV) category witnessed a 11% decrease compared to March 2023, with 12,710 units sold. Similarly, Intermediate and Light Commercial Vehicles (ILMCV) experienced a 19% decline, selling 6,781 units. However, Passenger Carriers saw a notable increase of 47%, selling 5,854 units. Small Commercial Vehicle (SCV) cargo and pickup sales dropped by 18%, with 15,367 units sold. Overall, the Domestic Commercial Vehicle market recorded a 10% decrease, selling 40,712 units. Additionally, the Commercial Vehicle International Business (IB) sector saw a slight increase of 2%, selling 1,550 units. The total Commercial Vehicle sales in March 2024 amounted to 42,262 units, marking a 10% decline compared to March 2023.
Mr. Girish Wagh, Executive Director of Tata Motors Ltd., expressed optimism regarding the commercial vehicles industry’s outlook at the onset of FY24. The industry aimed to surpass the previous volume peak achieved in FY19. While the first half of FY24 saw year-on-year sales growth across most segments, the momentum slowed in the second half due to various factors, including a high base, elections in five states during Q3FY24, and anticipation of the General Elections in Q1FY25.
During the transition to BS6 Phase II emission norms, Tata Motors utilized the opportunity to significantly enhance key attributes across its vehicle portfolio, incorporating smarter technologies to improve performance and value. These advancements were well-received by customers, resulting in overall sales of approximately 396,000 units in FY24. In Q4FY24, domestic sales slightly dipped to 104,922 units compared to 112,145 units in Q4FY23, which had seen increased pre-buying due to the BS6 Phase II transition.
The Medium and Heavy Commercial Vehicle (M&HCV) segment contracted marginally by around 6% compared to Q4FY23, although demand persisted from government infrastructure initiatives, core industry expansions, and e-commerce growth. Conversely, the Passenger Commercial Vehicles segment continued its robust post-pandemic recovery, with sales rising by approximately 38% compared to Q4FY23. However, sales volume of small and light commercial vehicles decreased by 10% compared to Q4FY23, largely due to financing constraints faced by first-time users.
Looking ahead, Mr. Wagh highlighted promising GDP growth prospects, government incentives aimed at enhancing productivity in manufacturing and agriculture sectors, and ongoing infrastructure-related projects, which are expected to drive demand for commercial vehicles in the latter half of Q2FY25. Despite this optimism, Tata Motors remains cautious, closely monitoring geopolitical developments, interest rates, fuel prices, and inflation’s impact on domestic demand.