Tata Engineering has reported an unprecedented 65 per cent growth in sales of its mainstay medium and heavy commercial vehicles in February, though Indica sales dropped nearly 30 per cent year on year.

Led by sales of 8,208 medium and heavy commercial vehicles during the month, the company's total sales in this segment touched 66,005 in the April 2002-February 2003 period, 35.3 per cent higher than the corresponding period last year.

This is significantly higher than Tata Engineering’s revised higher forecast of a 25 per cent growth in commercial vehicle sales this financial year.

Total commercial vehicle sales during the month, including 3,557 light commercial vehicles, increased 46.1 per cent to 11,272. The cumulative commercial vehicle sales growth in April-February crossed 34 per cent.

The February numbers are also significant because sales in the fourth quarter usually account for as much as 40 per cent of Tata Engineering's annual commercial vehicle sales.

While announcing the company’s third-quarter results, Ravi Kant, executive director (commercial vehicles), Tata Engineering, had attributed the strong growth in commercial vehicle sales to strong replacement demand, heavy movement of grains between states because of the drought and movement of capital goods fed by hectic construction.

He also said the company's Ex series of heavy trucks was well received in the market.

Tata Engineering's passenger car division reported mixed sales during the month, with the newly launched mid-sized passenger car Indigo topping the segment for the second consecutive month with sales of 1,772, but lower than January's figures.

However, Indica sales dropped by as much as 29.7 per cent during the month. Tata Engineering sold 5,030 Indicas during the month against the 6,524 sold in February 2002.

The company's total passenger vehicle sales during the month dropped 1 per cent as a result, to 8,880. The company attributed this to the "substantial slowdown of the industry due to expectations of lower vehicle prices after the Budget".