Tata Motors' market share jumps to 65.3%
The Asian Age — March 14, 2006

Tata Motors increased its market share in domestic commercial vehicle sales to 65.3 per cent in February from 60 per cent a year ago, according to data released by Society of Indian Automobile Manufacturers on Monday. Commercial vehicle sales continue to grow after the Supreme Court banned overloading of trucks and on rise in freight rates. Commercial vehicle sales for February stood at 35,049 vehicles, up 19.2 per cent on a yearly basis and 3 per cent on a sequential basis.

Sales in the segment have increased ever since the Supreme Court in a ruling in November banned overloading of trucks, leading to demand for more trucks. The demand for commercial vehicles has also increased due to healthy freight availability, reflected in rising freight rates. The average freight rate for February was Rs 2,333, up 17.6 per cent from a year ago. Tata Motors was the best performer among all players, selling 22,885 units, up 29.6 per cent on year.

As a result, it increased its share in the total domestic commercial vehicle market to 65.3 per cent from 60 per cent a year earlier. Ashok Leyland and Mahindra & Mahindra saw their market shares fall to 15.7 per cent and 8.8 per cent respectively, from 15.9 per cent and 11.6 per cent a year ago. Domestic passenger car sales during February stood at 63,215 units, up 1.8 per cent.