Tata Motors is hopeful of closing this financial year with a 25 per cent growth in commercial vehicle sales and continuing the run next year as well on replacement demand to meet new emission norms and a pick-up in the economy.
The company expects to close the hybrid bus order from BMC “any day now”, having already signed an agreement with the authorities.
“Truck sales have overall reached the 2011-12 peak, and we have been leading the market. We hope to close this fiscal year with around 25 per cent spike in overall sales. The first two months of the current quarter have been very good, and March should be better,” Tata Motors Executive Director for the commercial vehicle business unit Ravi Pisharody told PTI.
“We hope to continue the sales growth next fiscal year as well, which in percentage terms may be lower than this fiscal, considering the high base. Still, we expect to clock 10-15 per cent jump in sales as BS-IV norms will kick in from April 2017. I expect the second half of the next fiscal year to be better than H1.”
In April-May of 2015-16, Tata Motors stood out on the sales front. While domestic CV sales rose 20 per cent to 30,670 units and exports 42 per cent to 5,636 units in January, the same rose 22 per cent to 14,872 units and 31 per cent to 5,142 units, respectively, in February.
On the order for 25 hybrid buses from BMC, he said, “We have already signed an agreement with BMC and expect the final order for 25 hybrid buses any day now. This is the single-largest order for hybrid in the country till date.”
Each bus, which will be diesel-cum-electric hybrid, is expected to cost more than Rs 2 crore, including the annual maintenance charges, sources said.
Asked if he expects the domestic unit to report profit in the fourth quarter, he declined to comment, saying the company does not offer guidance on profitability.