Sales of Tata Motors drop significantly in Q1FY21

Sales of Tata Motors drop significantly in Q1FY21

Rishikesh Gaikwad
/ Categories: Trending

Tata Motors Limited announced its sales in the domestic and international market, for Q1FY21, which stood at 25,047 vehicles, as compared to 1,37,545 units during Q1FY20.  

Domestic commercial vehicles stood at 9,274 in Q1FY21, which saw a drop of 90 per cent in Q1FY21 as against Q1FY20. The commercial vehicle export number stood at 1,202 for Q1FY21 and saw a drop of over 78 per cent in the same period. Passenger vehicle business cumulatively sold 14,571 units in Q1FY21, which was 61 per cent lower than Q1 FY20. Earlier in June, the credit rating of Tata Motors Limited was downgraded by Moody’s to B1/negative from the earlier rating of Ba3/under review. The reason for this was the challenges faced by the company due to the Coronavirus outbreak.

The auto industry has seen a significant drop in the sales number in Q1FY21 as against last year. Passenger car OEMs like Maruti, Hyundai, Mahindra & Mahindra as well as Toyota saw a drop in passenger vehicle sales in the range of 50 per cent. The only sub-segment that witnessed a rise in sales numbers were tractors. Going forward, however, we could see a revival in auto sales numbers of the entire industry, with passengers opting for privately-owned vehicles rather than taking public transport due to social distancing practices.

Since the start of CY2020, Tata Motors has underperformed as compared to the overall industry performance. Tata Motors has given an absolute return of -46 per cent as against the S&P BSE Auto index of -17 per cent.

 

 

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