Tata Motors to treble CV exports in 4 yrs to beat local slump
Mumbai: Tata Motors is giving an added thrust to exports of commercial vehicles to beat continuing slowdown in the domestic market and has set a target of more than trebling the shipments to 1.5 lakh units per year before 2020.
The country’s largest automaker has been facing continuing headwinds in the domestic market both for passenger and commercial vehicle sales since the 2011-12 peak, due to a subdued economy and rising competition.
However, in the first quarter of this financial year, it recorded a volume growth of 38 per cent in commercial vehicle exports at 12,891 units over a year ago period, while domestic sales fell 1 per cent over the same period to about 66,000 units.
The company had shipped close to 45,000 units of trucks and buses in the year to March, 2015, which it wants to more than treble over the next three-four years.
“We have seen good traction in our exports, driven by the Prima and Ultra trucks and the premium pick-up Zenon. We had shipped out nearly 45,000 units last fiscal year.
“We want to take this to 1.5 lakh by the next three-four years,” the company’s executive director, commercial vehicles, Ravi Pisharody said today, without giving a target for this year.
While Tata Motors shipped 29 per cent more units in April, its May shipment jumped by a whopping 50 per cent and in June, it rose 35 per cent, he said.
The focus will be Southeast Asia, Middle East and Africa to counter slow sales growth in India, he said.
On the domestic front, Pisharody exuded optimism that tipper and truck sales will pick up after the monsoon season as the mining ban has been lifted in Goa, Karnataka and Odisha and with the increased government spending on infrastructure.
“There is some room for replacement purchase for another 6 to 12 months at least. But beyond 2016-17, we all hope that the economic recovery starts,” Pisharody said.
He also attributed the 15 per cent rise in medium and heavy vehicle sales last fiscal to over 1,27,000 units largely to replace an ageing fleet of trucks by owners. .