Tata Motors Limited (TTM) recorded a 17% decrease in total sales of commercial and passenger vehicles to 42,819 vehicles in Oct 2014 from 51,638 vehicles in Oct 2013. The automaker’s domestic sales of commercial and passenger vehicles also declined 17% to 38,760 in Oct 2014 from 46,926 vehicles a year ago.
The decrease was driven by challenging macroeconomic trends. Stringent financial rates and low consumer sentiment affected the sales at the light commercial vehicle (LCV) segment.
In the passenger vehicles business, Tata Motors’ sales for Oct 2014 went down 12% to 9,594 vehicles from 10,944 vehicles sold in October last year. Sales of utility vehicles declined 40% to 1,917 units from 3,189 units a year ago. Sales of all Tata Motors’ passenger vehicles in Oct 2014 dropped 19% to 11,511 units, compared to 14,133 vehicles sold last year.
The overall sales were adversely affected by the challenging market sentiment. However, the company benefited from new product launches. Zest recorded strong sales in the month while sales in the sedan segment improved 49% year over year.
In the commercial vehicles business, Tata Motors’ sales for Oct 2014 in the domestic market declined 17% to 27,249 vehicles from 32,793 vehicles sold in the corresponding month last year. Sales in the LCV business declined 32% to 16,897 vehicles while medium and heavy commercial vehicle (M&HCV) sales improved 30% to 10,352 vehicles.
Tata Motors’ export sales for Oct 2014 declined 14% to 4,059 vehicles from 4,712 vehicles sold in the previous year.
Tata Motors is one of the leading automotive manufacturers in India. The company has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Currently, Tata Motors carries a Zacks Rank #1 (Strong Buy).
Other automobile stocks worth considering include Gentex Corp. (GNTX), STRATTEC Security Corp. (STRT) and Toyota Motor Corp. (TM), all of which sport a Zacks Rank #1 (Strong Buy).
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