Auto major Tata Motors on Friday said its commercial and passenger vehicles sales in the domestic market witnessed a drop of 8 per cent at 54,915 units in January as against 59,441 units sold over year-ago month.
However, the auto major said its cumulative sales for the domestic market during April-January period of the current fiscal grew by 21 per cent with 552,887 units as compared to 458,205 units over the same period last year.
Low customer sentiments caused by non-availability of retail finance and liquidity crunch in the market have impacted the passenger vehicle business. The passenger vehicles domestic sales witnessed a decline of 11 per cent, at 17,826 units, as compared with 20,055 units sold last year, it said.
In the commercial vehicles segment, its domestic sales declined by 6 per cent in January to 37,089 units, compared to 39,386 units sold last year.
“Subdued market sentiments, high interest rates, lag effect of implementation of revised axle load norms, slowing industrial output and declining IIP growth index were the primary factors behind the lull,” a company statement said.
The company’s sales from exports (from both commercial and passenger vehicles in the last month were at 3,270 units, lower by 37 per cent over last year, due to current liquidity crisis in Nepal, formation of new government in Bangladesh and political uncertainty in Sri Lanka.