New Delhi, May 23: Tata Engineering & Locomotive Co Ltd, the country’s largest commercial vehicle manufacturer, says it will register lower sales growth this year at 9-10 per cent — a far cry from the 30 per cent growth it recorded in 2002-03.
Ravi Kant, executive director of the auto manufacturer, said Telco sales would, however, be higher than the anticipated industry growth of 7-8 per cent.
“There will be a general restructuring of the market,” Kant told reporters during the launch of the automaker's new 3.0-litre, 65-bhp pick-up, priced between Rs 3.80-4.41 lakh.
“Last fiscal, volumes were driven by replacement buying and demand from the construction industry,” he said adding sales are dependent on monsoon rains and general economic growth. “We could do better if monsoon rains were near normal and overall economic growth was robust.”
A good monsoon is vital for vehicle manufacturers as buying is dependent on farm production, which contributes around 25 per cent to GDP. The weather office has forecast a 96 per cent normal monsoon this year which is unlike to hurt economic growth like last year.
Kant said Telco’s new pick-up meets Euro II emission norms. Within the next two-three months, it will launch an airconditioned version of the model.
Telco also makes buses and is the third-largest manufacturer of passenger cars in terms of sales. While, the factory in Pune makes utility vehicles and passenger cars, the Jamshedpur facility produces buses and trucks.