Tata Motors' February global sales slump; JLR's rises

Tata Motors Ltd said global sales in February fell 22.4 per cent to 98,837 vehicles, the fourth consecutive monthly slide, as a 10 per cent rise in sales at its key Jaguar Land Rover unit was undermined by a slump in its Tata-branded vehicles. Jaguar Land Rover sales stood at 35,485 vehicles, Tata Motors said in a statement on Wednesday, up from 32,257 in the same month last year.

Sales of Tata passenger vehicles stood at 11,177 during the month, down almost 70 per cent. Tata, part of the salt-to-steel Tata Group conglomerate, said it sold 52,175 commercial vehicles in February, down an annual 9.8 per cent. Tata Motors Ltd slipped nearly two per cent in early trade on Wednesday, after JLR posted lower-than-expected retail volumes for February 2013. 

For the first time in a decade, India's largest automobile firm Tata Motors' market share in the passenger car segment fell to its lowest level of 4.9 per cent in February 2013 as rising competition and overall slowdown in the market took a toll on sales. The company's market share in the medium and heavy trucks segment, however, inched up to 52.98 per cent in February after hitting its lowest level of 46.72 per cent in January 2013. 

"After losing its market share considerably, the company has been focussing on liquidating its inventory and producing in line with demand. Tata Motors' dwindling market share also coincides with lowest sales posted by the industry in a decade, when sales declined 26 per cent to 158,513 units in February. But what was glaring is the company's passenger vehicle sales also dropped 70 per cent to 10,636 units, in a market which grew four per cent in February 2013. The situation in the market place is very dynamic. Nobody wants to face either of the two ends," a person close to the situation said. 

An analysis based on SIAM's monthly sales numbers reveals that Tata Motors' market share in the passenger car space has been moving southwards consistently since September 2012. From 10.87 per cent in September last year, the company's market share has more than halved to 4.9 per cent in February 2013. Ditto in the personal vehicle space (cars, utility vehicles, venture vans), where its market share has fallen to 4.68 per cent in February 2013 from 9.46 per cent in September 2012.