Boston, MA 06/06/2014 (wallstreetpr) – Tata Motors Limited (ADR) (NYSE:TTM) could not help but report that its May 2014 sales followed on the footsteps of the previous month. The India-based automaker is not sitting well as competition gets intense domestically and in the international market. While the company recently promised an end to its declining sales soon, Tata Motors’ monthly sales in the recent past having been nothing to write home about.
The company reported that its May sales declined 24 percent, whereby it sold 37,525 units in the month, against 49,304 units sold in the same month last year. The company reported nearly 8 percent decline in sales in April in its global market.
In the April 2014, Tata sold 75,026 vehicles in the global market, compared with 80,241 units in April 2013. The company witnessed sales in its commercial vehicle category down more than 32 percent. The decline in the commercial category offset the gains in the passenger and luxury vehicles market that rose 39 and 16 percent, respectively in April 2014.
In the latest monthly sales update, Tata Motors Limited (ADR) (NYSE:TTM) reported 27 percent decline in commercial vehicle sales in the domestic market. It sold 25,104 units in the category last month, compared with 34,296 units a year earlier.
Sales of passenger vehicles also dropped 17 percent in the latest update. The company reported 9,230-unit sales, down from 11,134-unit sales in May 2013.
Although the management of Tata Motors Limited (ADR) (NYSE:TTM) acknowledges the sales challenges in the company, it expects the problems to be short-lived as the company revamps its sales force while introducing new products.
Last month, Tata boasted about its rich product pipeline and enhanced capacity that will ensure a long-term strength in the domestic and international markets. As a matter of fact, the company intends to become among the top automakers in India, a position that it forfeited in recent times because of poor sales.
Tata Motors Limited (ADR) (NYSE:TTM) believes that making its brand a household name is one of the best ways to boost sales in a competitive market. As such, the company has announced a deal with eBay Inc (NASDAQ:EBAY) India whereby the global e-commerce provider will offer branded merchandise of Tata’s SUV, Tata Safari Storme, online. Tata expects to use the opportunity to further its engagement with online customers.