Tata Motors Limited (TTM) recorded a 17% decrease in total sales of Tata commercial and passenger vehicles to 362,995 units in 2014 from 435,079 units in 2013. In the passenger vehicles business, the brand’s sales for 2014 went down 11% to 92,227 vehicles.
In the commercial vehicles business, Tata Motors’ sales for 2014 in the domestic market declined 21% to 234,142 vehicles due to a 32% plunge in cumulative light commercial vehicle (“LCV”) sales, which offset the 10% rise in medium and heavy commercial vehicle (M&HCV) sales. Export sales for 2014 inched up 1% to 36,626 vehicles.
Challenging macroeconomic trends affected the sales in 2014. However, there were signs of improvement toward the end of the year and the sales data for December was quite favorable.
Tata Motors recorded a 10% increase in total sales of Tata commercial and passenger vehicles to 41,734 units in Dec 2014, up from 37,836 units in Dec 2013. The brand’s domestic sales of commercial and passenger vehicles also improved 8% to 37,776 vehicles in Dec 2014 from 35,010 vehicles a year ago.
In the passenger vehicles business, Tata Motors’ sales for Dec 2014 went up 30% to 12,040 vehicles from 9,272 vehicles sold in December 2013. Sales of utility vehicles declined 24% to 2,084 units. Sales of passenger cars in Dec 2014 surged 52% to 9,956 units.
In the commercial vehicles business, Tata Motors’ sales of 25,736 vehicles for Dec 2014 in the domestic market remained in line with the year-ago figure. Sales in the LCV business declined 26% to 13,298 vehicles while M&HCV sales improved 62% to 12,438 vehicles.
Tata Motors’ export sales for Dec 2014 improved 40% to 3,958 vehicles from 2,826 vehicles sold in the prior-year period.
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 #4 (Sell).
Investors interested in the auto industry could consider better-ranked stocks like Delphi Automotive PLC (DLPH), Gentex Corp. (GNTX) and Dana Holding Corporation (DAN), all carrying a Zacks Rank #2 (Buy).
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