* Vehicle sales rose only 5.6% YoY
* Sales of commercial vehicles (Tata Motors primary business) grew by 18.5% YoY
* Sales of passenger vehicles declined 2.8% YoY
* Exports fell 22% YoY
As I reported earlier, margin pressures hurt Tata Motors in the previous quarter due to higher raw material prices and higher interest rates.
Lets look at the sales volume growth for the last few months:
* October 2006 - 5.6%
* September 2006 - 23.8%
* August 2006 - 26.2%
* July 2006 - 44.5%
As you can see by these figure,s the sales growth has consistently declined the last few months but October numbers seem really low.
Tata Motors will keep seeing increased competition in the booming Indian auto sector not only from foreign automakers but from domestic ones as well. I still like this company long term but not at these levels, especially with the Indian markets at an all time high.
TTM 1-yr chart: